NCND AGREEMENT

An international trade instrument; "non circumvention/non disclosure agreement" used in the preliminary stages of a business transaction where the Seller and Buyer do not know each other, but are brought into contact with each other by one or more intermediaries (also known as brokers or middlemen), to fulfill the transaction. Non Circumvention/Non Disclosure Agreements ensure that the intermediaries in the transaction are not cicumvented and excluded from the transaction by the Buyer and/or Seller and/or the other intermediaries. Many trade transactions are chain-like. Product flows like this: seller-broker-broker-broker-buyer. The brokers in the middle use NCNDs to ensure that they are not circumvented by anyone else in the chain; also, to ensure that information on the other parties in the chain is not disclosed to outside parties. They are valid for a specified term; usually two years.