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What is an NCND Agreement? A Comprehensive Legal Overview
Definition & Meaning
An NCND Agreement, or non-circumvention non-disclosure agreement, is a legal contract that protects the interests of parties involved in preliminary business discussions. It is commonly used when a buyer and seller are introduced by intermediaries, ensuring that these intermediaries are not bypassed and that sensitive information shared during negotiations remains confidential. This agreement typically has a specified duration, during which the parties are bound by its terms.
Table of content
Legal Use & context
NCND Agreements are primarily used in business transactions, particularly in industries where confidentiality and the protection of relationships are critical, such as real estate, finance, and international trade. These agreements help establish trust among parties who may not know each other well and can be essential in negotiations involving significant financial stakes. Users can manage these agreements through legal templates provided by services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A technology company is seeking investors for a new product. They enter into an NCND Agreement with a broker who introduces them to potential investors. This agreement ensures that the broker receives credit for the introductions and that the investors do not disclose proprietary information about the product.
Example 2: A real estate developer is negotiating with a landowner through a real estate agent. An NCND Agreement is signed to protect the agent's commission and ensure that the landowner does not bypass the agent to negotiate directly with the developer. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Key Differences
California
NCND agreements are often subject to strict enforcement of confidentiality terms.
New York
Commonly used in finance, with specific requirements for written agreements.
Texas
May include additional clauses regarding dispute resolution.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation where an NCND Agreement is needed, consider the following steps:
Clearly outline the terms, including what constitutes confidential information and the obligations of all parties.
Consult a legal professional to ensure the agreement meets all necessary legal requirements.
Explore ready-to-use templates from US Legal Forms to simplify the process.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
The primary purpose is to protect the confidentiality of information shared during negotiations and to ensure that intermediaries are not bypassed.
While it is possible to draft one, consulting a legal professional is recommended to ensure it meets legal standards and adequately protects your interests.
Typically, these agreements last for a specified term, often ranging from one to five years, but this can vary based on the parties' needs.