Legal Question in Business Law in Texas

non circumvention

I signed a non-circumvention & fee agreement agreement with a broker in Texas with regards to a special finance program. After three months the broker told us he could not work with us. We did not know his source of contact, we did not speak to his contact, we were never given any telephone number of his contact.

Two months later by chance we were introduced to the original brokers contact by an indipendent party and have done business with this person.

Now the original broker has found that we have done a transaction with the funder and wants the fee agreeement agreeement that we signed honored.

Please advise where we stand


Asked on 3/23/04, 9:25 am

4 Answers from Attorneys
Bradford Downs Bradford K. Downs, Jr. Attorney at Law

Re: non circumvention

The terms of your contract should be binding. Absent any contractual terms, it appears that the broker abandoned the contract and "broke the deal". So long as there was no fraud involved in circumventing the original broker, you may be able to get out of the additional commissions. These are general statements and I am not able to give an acurate legal opinion without reviewing the actual agreement that was signed.

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Answered on 3/23/04, 9:33 am

Re: non circumvention

I can't answer this one without reviewing the paperwork you signed. The main things for which I'd look:

1. Does the contract have a time limit on how long the non-circumvention is to apply?

2. Did the person to whom the non-circumvention is to protect disavow the contract in writing?

3. Does the contract address this directly?

I think you *may* have an argument that the other party terminated the contract, thereby leaving you free to associate with the contact. Again, I would have to see what you all signed before I can make a useful assessment.

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Answered on 3/23/04, 9:34 am
Matthew King Wershow & Ritter, Inc. P.S.

Re: non circumvention

This is a Texas law matter. I am not licensed to practice in Texas. I wish you success in resolving this matter.

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Answered on 3/23/04, 10:27 am
Peter Bradie Bradie, Bradie & Bradie

Re: non circumvention

You are probably off the hook, although that depends upon both the language of the agreement, and the language used in the termination notice.

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Answered on 3/23/04, 10:35 am


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