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Non Compete Non Circumvent Agreement Template for Nigeria

A comprehensive legal agreement governed by Nigerian law that combines non-compete and non-circumvention provisions to protect business interests, relationships, and confidential information. The document establishes restrictions on competitive activities and prevents parties from bypassing established business relationships. It includes specific provisions for geographical limitations, duration of restrictions, and remedies for breach, all structured to comply with Nigerian constitutional rights and competition laws. The agreement balances the protection of legitimate business interests with individual rights to trade and work.

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What is a Non Compete Non Circumvent Agreement?

The Non-Compete Non-Circumvent Agreement is a crucial legal instrument in Nigerian business relationships where parties need to protect their commercial interests, confidential information, and business relationships. This document is particularly relevant when engaging with business partners, employees, or contractors who will have access to sensitive information or key business relationships. The agreement combines two key protective elements: preventing direct competition and preventing the circumvention of established business relationships. Under Nigerian law, such agreements must be reasonable in scope, duration, and geographical coverage to be enforceable, considering both the Federal Competition and Consumer Protection Act 2018 and constitutional rights. The document typically includes detailed provisions about restricted activities, protected relationships, confidentiality obligations, and enforcement mechanisms.

What sections should be included in a Non Compete Non Circumvent Agreement?

1. Parties: Identification of all parties to the agreement, including full legal names, registration details for companies, and addresses

2. Background: Context of the agreement, relationship between parties, and purpose of entering into the NCNCA

3. Definitions: Detailed definitions of key terms including 'Confidential Information', 'Competing Business', 'Territory', 'Restricted Period', and other relevant terms

4. Non-Compete Obligations: Specific restrictions on competitive activities, including scope, duration, and geographical limitations

5. Non-Circumvention Obligations: Restrictions on bypassing or circumventing the other party in business dealings, particularly regarding identified business relationships

6. Confidentiality Obligations: Requirements for handling and protecting confidential information, including usage restrictions and security measures

7. Duration and Territory: Specific timeframe for restrictions and geographical scope of the agreement

8. Consideration: Details of consideration provided in exchange for the restrictions, ensuring enforceability under Nigerian law

9. Breach and Remedies: Consequences of breach, including available remedies and damage calculations

10. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction for dispute resolution

11. General Provisions: Standard clauses including severability, entire agreement, amendments, and notices

What sections are optional to include in a Non Compete Non Circumvent Agreement?

1. Relationship of Parties: Include when the agreement is ancillary to another business relationship (e.g., employment, partnership) to clarify the broader context

2. Return of Materials: Include when physical or electronic materials containing confidential information need to be returned or destroyed

3. Non-Solicitation: Add when protection against solicitation of employees, customers, or suppliers is needed

4. Assignment and Succession: Include for agreements where transfer rights need to be specifically addressed or restricted

5. Alternative Dispute Resolution: Include when parties prefer arbitration or mediation before court proceedings

6. Surviving Obligations: Add when certain obligations need to explicitly survive termination of the agreement

What schedules should be included in a Non Compete Non Circumvent Agreement?

1. Schedule 1 - Restricted Territory: Detailed description or map of geographical areas where restrictions apply

2. Schedule 2 - Competing Activities: Specific list of prohibited business activities and competitors

3. Schedule 3 - Protected Relationships: List of specific customers, suppliers, or business relationships protected from circumvention

4. Schedule 4 - Confidential Information: Detailed categorization of information considered confidential under the agreement

5. Appendix A - Consideration Details: Detailed breakdown of any financial or other consideration provided

6. Appendix B - Compliance Certificate: Template for periodic compliance certification if required

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Nigeria

Publisher

Genie AI

Cost

Free to use

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