What is a NCNDA??
A NCNDA is a Non
Circumvention Non Disclosure Agreement entered into and between two
people, one sharing information, with the recipient who receives the
information. The recipient agrees to not disclose the Information to
anyone else. It principle the agreement works both ways. In the
commodity Industry many people can sign a NCNDA and all then agree
to not disclose information received by them. Sharing the
information illegally can mean result in huge losses to all involved
It comes down to breaking of a contract (kontrakbreek) and the
person illegally disclosing the confidential information can be sued
by all parties involved for damages incurred.
The Common NCNDA
document used in the industry is one with with the heading of the
ICC (International Chamber of Commerce).
In the commodity
industry there are thee BIG problems
1) Product (POP - or
Proof of Product) The Question is - Does the product REALLY exit
2) Funds (POF - or
Proof of Funds) The Question is - Does the Buyer really have the
Funds to buy the product and
3) Circumvention.
Many people say that
NCNDA agreements mean nothing anyway, and there is no need for them
to sign them. Be careful please!! We place very high value on NCNDA
documents and for this reason our signed NCNDA documents mean a lot.
The fact is that if
someone does circumvent you out of a lovely transaction, you would
want to take them to Court. Without any NCNDA in place, you will not
even get past your lawyer, much less get to Court. With a signed
NCNDA in place, you can have a Circumvention transaction stopped,
and you can have the guilty party blacklisted. Without it, you will
be regarded as a weak, or slack businessman or woman.
VERY IMPORTANT:
The main people that may circumvent
you will be either the Mines or the Buyers (yes, commodity
Brokers and mandates may also do so to make more money for
themselves). It is vitally important to get the MINE (Sellers) and
The BUYERS to sign your NCNDA. Please, this is VERY important. If
you have a mandate with a mine, and we bring you Buyers. If the mine
Circumvent you because of your lack of a signed NCNDA with them, it
will mean that everyone involved will loose out, including us. The
same applies to the Buyers. Do not let their friendliness fool you.
When someone owes you money, you immediately becomes their enemy and
they will often do their best to get out of paying you the money
they owe you. Do not be fooled. Do your business properly, with your
paperwork in place, and your NCNDA will be your safety net, saving
you much money and heartache.
There is a big
difference between a NCNDA and a
IMFPA. While a NCNDA is a
Non Circumvention and Non Disclosure agreement between you and the
people you deal with and disclose your valuable, hard earned,
confidential information with, an
IMFPA is a Master Fee
Protection agreement. Many Brokers use the
IMFPA as their Non Disclosure
agreement. The problem we have with this is, why should you disclose
your banking details with everyone while you only want to Protect
yourself against circumvention?
If you would like to comment on this or give us your
input, please do so by email to
Chairman@sance.co.za
All CHROME transactions - Procedures must please
be adhered to:
Buyers sign
NCNDA
We forward LAB Report to the
Buyers
Buyers issue
Proper LOI to the
Mine
/ S.A.N.C.E.
Sellers (the mine) issue
Contract and Invoice to the Sellers
Buyers sign Contract and Invoice
- then Prove Funds (POF)
Viewing of Product
at the mine -Buyers are welcome to do further Lab Tests to
confirm the quality
Buyers Pay and lift the Chrome
All COAL transactions - These basic Procedures below must please
be adhered to:
NCNDA
Buyers issue
Proper LOI
to the Mine
/ S.A.N.C.E.
The Mine probes the
Buyers account to verify sufficient funds
Sellers (the mine) issue
Contract and Invoice to the Sellers
Buyers sign Contract and Invoices
Viewing of Product
(POP) at the mine (when necessary / applicable)
Contract is honored
by the Mine and Coal is transferred as per the Contract to the
Coast/ Buyers lift the Coal as per Loading Instructions
Mines: Buyers and
Sellers please download Mines
NCNDA here
Article:
Why Ghost Coal?
Written by Louis Kearney (Chairman of S.A.N.C.E.)