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Transactions with affiliates clause: Copy, customize, and use instantly

Introduction

A transactions with affiliates clause outlines the terms and conditions under which one party may engage in transactions with its affiliates, which include subsidiaries, parent companies, or related entities. This clause is essential to ensure that such transactions are transparent, consistent with the agreement, and do not result in conflicts of interest or unfair advantage.

Below are templates for transactions with affiliates clauses tailored to different scenarios. Copy, customize, and insert them into your agreement.

General transactions with affiliates clause

This is a standard transactions with affiliates clause.

The [Party] may enter into transactions with its affiliates, including but not limited to sales, purchases, and service agreements. All such transactions must be conducted at arm’s length and under terms no less favorable than those offered to non-affiliates, and the [Party] agrees to disclose the details of such transactions to the other party upon request.

Transactions with affiliates clause with disclosure requirement

This clause requires disclosure of affiliate transactions.

The [Party] agrees to disclose any material transactions with its affiliates to the other party on an annual basis or upon request. These disclosures will include the nature of the transaction, the parties involved, and any financial terms.

Transactions with affiliates clause with provision for arm’s length terms

This clause ensures that transactions with affiliates are at arm’s length.

Any transactions between [Party] and its affiliates will be conducted at arm’s length and under terms and conditions no less favorable than those available in comparable transactions with non-affiliates. The [Party] agrees to provide evidence of the arm’s length nature of these transactions upon request.

Transactions with affiliates clause with limitation on transactions

This clause limits transactions with affiliates.

The [Party] agrees that it will not enter into any transactions with its affiliates that would result in an adverse financial impact on the other party. Any such transactions must be pre-approved in writing by the other party, which may withhold approval at its discretion.

Transactions with affiliates clause with non-compete provision

This clause includes a non-compete provision for affiliate transactions.

The [Party] agrees that any transactions with its affiliates that involve goods or services competing with the other party’s business must be subject to a non-compete agreement, ensuring that such transactions do not undermine the interests of the other party in this Agreement.

Transactions with affiliates clause with fair market value requirement

This clause requires transactions with affiliates to be at fair market value.

Any transactions between the [Party] and its affiliates will be conducted at fair market value. The [Party] agrees to provide the other party with a third-party valuation of the transaction if requested, ensuring transparency and fairness.

Transactions with affiliates clause with approval process

This clause requires prior approval for affiliate transactions.

The [Party] agrees to obtain written approval from the other party before entering into any transaction with an affiliate that could materially affect the performance or obligations under this Agreement. The other party will respond to such requests for approval within [X] days.

Transactions with affiliates clause with disclosure of conflicts of interest

This clause addresses conflicts of interest.

The [Party] agrees to disclose any potential conflicts of interest arising from transactions with affiliates. If a conflict is identified, the [Party] will take appropriate steps to mitigate it, including obtaining independent third-party advice or consent from the other party.

Transactions with affiliates clause with notification requirement

This clause requires notification of affiliate transactions.

The [Party] agrees to notify the other party within [X] days of entering into any material transaction with its affiliates. The notification will include a description of the transaction and any potential impact on the other party’s obligations under this Agreement.

Transactions with affiliates clause with indemnification for affiliate transactions

This clause includes indemnification for affiliate transactions.

The [Party] agrees to indemnify and hold harmless the other party from any claims, damages, or losses arising out of transactions with its affiliates. This includes any legal or financial obligations resulting from such transactions, except where the other party has expressly consented to the transaction.

Transactions with affiliates clause with transparency and audit rights

This clause includes transparency and audit rights.

The [Party] agrees to maintain records of all transactions with affiliates and to make these records available to the other party upon request. The other party has the right to audit these transactions to ensure compliance with the terms of this Agreement.

Transactions with affiliates clause with confidentiality requirements

This clause imposes confidentiality requirements.

Any transaction between the [Party] and its affiliates that involves confidential information or trade secrets of the other party shall be subject to the confidentiality provisions of this Agreement. The [Party] agrees to ensure that its affiliates adhere to these confidentiality obligations.

Transactions with affiliates clause with non-discrimination provision

This clause ensures non-discrimination in affiliate transactions.

The [Party] agrees not to discriminate against the other party in favor of its affiliates when entering into transactions under this Agreement. All terms and conditions of such transactions will be offered equally to both the [Party] and its affiliates.

Transactions with affiliates clause with approval of financial terms

This clause requires approval of financial terms for affiliate transactions.

The [Party] agrees to provide the other party with a summary of the financial terms of any material transactions with its affiliates. The other party must approve these terms in writing before the transaction can be finalized.

Transactions with affiliates clause with provision for dispute resolution

This clause includes a dispute resolution process for affiliate transactions.

In the event of a dispute arising from a transaction with an affiliate, the parties agree to resolve the dispute through mediation or arbitration before pursuing any legal action. The dispute resolution process will be conducted in accordance with the procedures set forth in this Agreement.

Transactions with affiliates clause with provision for regular reporting

This clause requires regular reporting on affiliate transactions.

The [Party] agrees to provide the other party with quarterly reports detailing all significant transactions with its affiliates. These reports will include financial summaries, performance metrics, and any other relevant information.

Transactions with affiliates clause with protection of third-party rights

This clause protects third-party rights in affiliate transactions.

The [Party] agrees that transactions with its affiliates will not infringe upon any third-party rights, including intellectual property or contractual obligations. The [Party] will be responsible for ensuring that any affiliate transactions comply with third-party agreements.

Transactions with affiliates clause with provision for compliance with applicable laws

This clause ensures compliance with applicable laws for affiliate transactions.

The [Party] agrees to comply with all applicable laws, regulations, and industry standards when entering into transactions with its affiliates. The [Party] will provide proof of compliance to the other party upon request.

Transactions with affiliates clause with provision for termination of affiliate transactions

This clause allows for the termination of affiliate transactions.

Either party may terminate any transaction with an affiliate that is found to be materially detrimental to the interests of this Agreement. Termination of such a transaction will require [X] days’ written notice and must include a detailed explanation of the reasons for termination.

This clause specifically addresses related-party transactions.

The [Party] agrees that all related-party transactions with affiliates, including sales, loans, and shared services, will be conducted on terms that are fair and reasonable. The [Party] will provide full disclosure of such transactions and ensure they are documented according to generally accepted accounting principles.

Transactions with affiliates clause with monitoring and compliance responsibilities

This clause includes monitoring and compliance provisions.

The [Party] agrees to monitor all transactions with its affiliates to ensure compliance with the terms of this Agreement. Any transactions that do not meet the agreed standards or that deviate from arm’s length principles will be subject to review and potential corrective action.

This clause requires third-party consent for affiliate transactions.

If a transaction with an affiliate involves third-party assets, intellectual property, or interests, the [Party] must obtain prior consent from the third-party before proceeding with the transaction. The third-party consent will be provided in writing and shared with the other party.

Transactions with affiliates clause with provision for affiliate performance guarantees

This clause requires performance guarantees from affiliates.

The [Party] agrees to require its affiliates to provide performance guarantees, such as performance bonds or collateral, for any material transactions involving the [Party]. The guarantees will ensure the affiliate’s commitment to meeting the terms of the transaction and fulfilling obligations under this Agreement.

Transactions with affiliates clause with provision for renegotiation of terms

This clause allows for renegotiation of terms.

If a transaction with an affiliate results in material changes to the terms of this Agreement or the relationship between the parties, the [Party] agrees to renegotiate the affected terms in good faith, with the objective of maintaining fairness and balance in the Agreement.

This clause places restrictions on related-party transactions.

The [Party] agrees not to engage in any related-party transactions with its affiliates that could potentially undermine the interests of the other party under this Agreement. Any such transaction must be pre-approved in writing by the other party, and must comply with the provisions of this clause.

Transactions with affiliates clause with transparency of financial terms

This clause ensures transparency of financial terms in affiliate transactions.

The [Party] agrees to disclose the financial terms of any material transaction with its affiliates. This disclosure will include pricing, payment schedules, and any other financial details, and the [Party] will provide this information to the other party upon request.

Transactions with affiliates clause with provision for third-party audit rights

This clause allows for third-party audit of affiliate transactions.

The [Party] agrees to allow the other party or a designated third-party auditor to review and audit any transactions with affiliates, ensuring compliance with the terms of this Agreement. The audit will take place at reasonable intervals and at the expense of the [Party].

Transactions with affiliates clause with confidentiality obligations

This clause enforces confidentiality for affiliate transactions.

Any transactions between the [Party] and its affiliates that involve confidential information must be subject to the same confidentiality obligations as those outlined in this Agreement. The [Party] will ensure that its affiliates adhere to these confidentiality provisions.

This clause restricts profit-sharing arrangements with affiliates.

The [Party] agrees not to enter into any profit-sharing, commission, or revenue-sharing arrangements with its affiliates that could conflict with the terms of this Agreement. Any such arrangements must be disclosed to the other party and subject to prior approval.

Transactions with affiliates clause with compliance with anti-bribery and corruption laws

This clause ensures compliance with anti-bribery and anti-corruption laws.

The [Party] agrees to comply with all applicable anti-bribery and anti-corruption laws when entering into transactions with its affiliates. This includes ensuring that no affiliate is involved in bribery or corrupt practices that could affect the performance of this Agreement.

Transactions with affiliates clause with provision for independent valuation

This clause requires independent valuation for affiliate transactions.

The [Party] agrees to obtain an independent third-party valuation of any material transaction with an affiliate. This valuation will ensure that the transaction is conducted at fair market value, and the [Party] will provide the valuation report to the other party upon request.

Transactions with affiliates clause with limitations on preferential treatment

This clause limits preferential treatment for affiliates.

The [Party] agrees not to give preferential treatment to its affiliates in any transactions under this Agreement. All terms and conditions offered to affiliates must be at least as favorable as those offered to non-affiliated parties.

Transactions with affiliates clause with provision for monitoring and enforcement

This clause includes monitoring and enforcement provisions.

The [Party] agrees to monitor and enforce compliance with the terms of this Agreement in any transactions with affiliates. If the [Party] becomes aware of any violations of these terms, it will take appropriate action, including corrective measures, and report the issue to the other party.

Transactions with affiliates clause with prohibition on self-dealing

This clause prohibits self-dealing in affiliate transactions.

The [Party] agrees that it will not engage in self-dealing or other unfair transactions with its affiliates under this Agreement. Any transactions with affiliates must be conducted in a way that does not benefit the [Party] at the expense of the other party.

Transactions with affiliates clause with notice requirement for affiliate agreements

This clause requires notice of affiliate agreements.

The [Party] agrees to provide written notice to the other party before entering into any material agreement with its affiliates. The notice will include details of the transaction and its potential impact on the performance of this Agreement.

Transactions with affiliates clause with restrictions on affiliate investments

This clause restricts affiliate investments.

The [Party] agrees not to make or receive any investments in affiliates that could affect the performance or fairness of this Agreement. Any investments made in affiliates must be disclosed to the other party for review and approval.

Transactions with affiliates clause with provision for non-compete between affiliates

This clause includes non-compete provisions for affiliates.

The [Party] agrees to ensure that its affiliates comply with any non-compete provisions in this Agreement. If a transaction with an affiliate competes directly with the business of the other party, it must be disclosed and subject to review by the other party.

Transactions with affiliates clause with provision for regular updates

This clause requires regular updates on affiliate transactions.

The [Party] agrees to provide the other party with quarterly updates regarding any significant transactions with affiliates, including changes in terms, new transactions, and any potential conflicts of interest.

Transactions with affiliates clause with penalties for undisclosed transactions

This clause imposes penalties for undisclosed transactions.

If the [Party] enters into a material transaction with an affiliate without disclosing it to the other party, the [Party] will be liable for penalties, including compensation for any financial losses incurred by the other party due to the undisclosed transaction.

This clause outlines the resolution of disputes related to affiliate transactions.

In the event of a dispute arising from a transaction with an affiliate, the parties agree to resolve the dispute through mediation or arbitration. Any arbitration proceedings will take place in accordance with the dispute resolution procedures set forth in this Agreement.

Transactions with affiliates clause with provision for termination of affiliate relationships

This clause allows termination of affiliate relationships.

The [Party] agrees to terminate any relationship with an affiliate that causes a material breach of this Agreement. The termination must be executed in a manner that does not negatively affect the performance of this Agreement, and the other party must be notified promptly.

Transactions with affiliates clause with provision for affiliate agreements to be subject to the same terms

This clause ensures affiliate agreements adhere to the same terms.

The [Party] agrees that any agreement entered into with an affiliate that relates to the subject matter of this Agreement will be subject to the same terms and conditions as this Agreement. The affiliate agreements must align with the overarching principles and obligations set forth here.

Transactions with affiliates clause with provision for approval of affiliate contracts

This clause requires approval of affiliate contracts.

The [Party] agrees that no affiliate contract related to this Agreement will be executed without prior approval from the other party. Approval will be based on the terms and potential impact of the contract on the overall performance of the Agreement.

Transactions with affiliates clause with monitoring of affiliate performance

This clause provides for the monitoring of affiliate performance.

The [Party] agrees to monitor the performance of its affiliates in relation to this Agreement. If an affiliate fails to meet the agreed standards, the [Party] will take corrective actions, including renegotiating terms or discontinuing the relationship with the affiliate.

Transactions with affiliates clause with provision for joint ventures with affiliates

This clause includes joint venture provisions with affiliates.

The [Party] may enter into joint ventures or collaborations with its affiliates in accordance with the terms of this Agreement. However, any such joint ventures must be disclosed and must not interfere with the obligations and interests of the other party under this Agreement.

Transactions with affiliates clause with provision for compliance with antitrust laws

This clause ensures compliance with antitrust laws.

The [Party] agrees that all transactions with its affiliates will comply with applicable antitrust and competition laws. The [Party] will ensure that no affiliate transactions create anti-competitive practices or violate regulatory requirements.

Transactions with affiliates clause with provision for affiliate compliance with this Agreement

This clause ensures affiliate compliance with the main Agreement.

The [Party] agrees to ensure that its affiliates comply with all the terms and conditions of this Agreement. The [Party] will be responsible for ensuring that any affiliate transaction does not conflict with or violate the provisions of this Agreement.

Transactions with affiliates clause with provision for termination of affiliate contracts in case of breach

This clause allows termination of affiliate contracts in case of breach.

If an affiliate’s actions or performance lead to a breach of this Agreement, the [Party] agrees to terminate its contract with the affiliate immediately. The non-breaching party will be notified in writing, and any consequences resulting from the breach will be managed accordingly.

Transactions with affiliates clause with periodic review of affiliate agreements

This clause includes periodic reviews of affiliate agreements.

The [Party] agrees to conduct periodic reviews of all affiliate agreements to ensure that the terms of those agreements remain consistent with the provisions of this Agreement. These reviews will take place at least annually and will include an evaluation of any new or updated affiliate transactions.

Transactions with affiliates clause with restrictions on affiliate mergers or acquisitions

This clause restricts affiliate mergers or acquisitions.

The [Party] agrees not to allow any affiliate mergers or acquisitions that would materially alter the performance of this Agreement without prior written consent from the other party. The other party reserves the right to review the proposed changes and, if necessary, terminate the Agreement.

Transactions with affiliates clause with provision for compensation for affiliate-caused losses

This clause provides for compensation due to affiliate-caused losses.

The [Party] agrees to compensate the other party for any financial losses caused by transactions with affiliates that violate the terms of this Agreement. This includes losses related to defective products, failure to meet obligations, or breach of contract by the affiliate.

Transactions with affiliates clause with notification of changes in affiliate structure

This clause requires notification of changes in affiliate structure.

The [Party] agrees to notify the other party within [X] days of any changes in the structure of its affiliates, including changes in ownership, control, or significant business operations. The other party may review the changes and assess any impact on the Agreement.

Transactions with affiliates clause with restriction on cross-affiliate transactions

This clause restricts cross-affiliate transactions.

The [Party] agrees not to engage in any cross-affiliate transactions that would conflict with the terms of this Agreement. Any such transaction must be disclosed to the other party and approved in writing before proceeding.

Transactions with affiliates clause with provision for third-party independent review

This clause allows for third-party independent review of affiliate transactions.

The [Party] agrees to submit any transactions with its affiliates to a third-party independent review to ensure compliance with the terms of this Agreement. The third-party review will include an assessment of the financial terms, fairness, and potential conflicts of interest.

Transactions with affiliates clause with provision for proportionality in affiliate agreements

This clause ensures proportionality in affiliate agreements.

Any agreements between the [Party] and its affiliates must reflect the proportionality of the transaction to the overall objectives of this Agreement. The terms must be consistent with those offered to non-affiliated parties, and any deviations must be justified and approved.

Transactions with affiliates clause with right to audit affiliate transactions

This clause gives the right to audit affiliate transactions.

The [Party] agrees to allow the other party to audit any material transactions with affiliates. The audit will include a review of financial documents, contracts, and any other records related to the transaction. The audit will be conducted at reasonable intervals and at the expense of the non-breaching party.

Transactions with affiliates clause with compliance with internal policies

This clause requires compliance with internal policies.

The [Party] agrees to ensure that all transactions with affiliates are consistent with the internal policies governing such transactions. Any deviation from these policies must be disclosed and approved by the other party to ensure no conflict with the terms of this Agreement.

This clause includes indemnification for affiliate-related losses.

The [Party] agrees to indemnify and hold harmless the other party from any losses or damages arising from transactions with its affiliates that result in breach or violation of the terms of this Agreement. The indemnification will include legal costs and any other related expenses.

Transactions with affiliates clause with restriction on direct competition with non-affiliated parties

This clause prohibits affiliates from competing with non-affiliated parties.

The [Party] agrees not to allow its affiliates to engage in business activities that directly compete with the business interests of the non-affiliated parties under this Agreement. Any competitive activities must be disclosed and pre-approved by the other party.

Transactions with affiliates clause with requirement for written agreement for affiliate transactions

This clause requires written agreements for affiliate transactions.

All transactions with affiliates must be formalized through written agreements that outline the terms and conditions, including financial terms, timelines, and obligations. These agreements must be approved by the other party before execution.

Transactions with affiliates clause with provision for the allocation of costs for affiliate transactions

This clause allocates costs for affiliate transactions.

The [Party] agrees to allocate any costs related to transactions with affiliates, including administrative and legal fees, proportionately between itself and the other party. These costs will be shared in a manner that is fair and consistent with the terms of this Agreement.

Transactions with affiliates clause with provision for resolution of disputes regarding affiliate transactions

This clause includes dispute resolution provisions for affiliate transactions.

If any dispute arises from a transaction with an affiliate, the parties agree to resolve the dispute through mediation or arbitration. The mediation will take place in a neutral location and be conducted by a mutually agreed-upon mediator. If unresolved, arbitration will follow.

This clause restricts related-party loans.

The [Party] agrees not to extend any loans or credits to its affiliates that could adversely affect the terms or execution of this Agreement. Any loans to affiliates must be disclosed and must not have terms that are more favorable than those offered to third-party entities.

Transactions with affiliates clause with provision for proportional benefit to affiliates

This clause ensures proportional benefit to affiliates.

Any benefits or incentives arising from transactions with affiliates must be proportional to the obligations and value provided to the other party under this Agreement. The [Party] will ensure that affiliate transactions do not result in unfair advantages or benefits for affiliates over non-affiliated parties.

Transactions with affiliates clause with provision for annual reporting of affiliate transactions

This clause includes annual reporting of affiliate transactions.

The [Party] agrees to provide the other party with an annual report detailing all material transactions with its affiliates. The report will include financial summaries, performance metrics, and other relevant information about the transactions.

Transactions with affiliates clause with transparency of ownership in affiliate entities

This clause ensures transparency of ownership in affiliate transactions.

The [Party] agrees to disclose the ownership structure of any affiliate involved in transactions under this Agreement. Any change in the ownership of the affiliate must be reported to the other party promptly, including any changes that could affect the performance or fairness of the Agreement.

Transactions with affiliates clause with provisions for the approval of affiliate partners

This clause requires approval of affiliate partners.

The [Party] agrees to obtain written approval from the other party for any affiliate partner involved in a material transaction. Approval will be based on the affiliate’s financial stability, reputation, and alignment with the terms of this Agreement.

Transactions with affiliates clause with provision for ensuring compliance with competition laws

This clause ensures compliance with competition laws.

The [Party] agrees to ensure that all transactions with its affiliates comply with applicable competition laws and regulations. The [Party] will take all necessary steps to prevent anti-competitive behavior or unfair trade practices in these transactions.

Transactions with affiliates clause with disclosure of terms for affiliate partnerships

This clause requires the disclosure of affiliate partnership terms.

The [Party] agrees to disclose the terms of any material affiliate partnerships to the other party. This disclosure will include the nature of the partnership, key deliverables, financial arrangements, and potential impacts on the performance of this Agreement.

Transactions with affiliates clause with right to cancel affiliate transactions with prior notice

This clause provides the right to cancel affiliate transactions.

Either party may cancel any transaction with an affiliate by providing [X] days written notice if the transaction is deemed to have a negative impact on the other party’s interests. Cancellation of the affiliate transaction will not affect the overall validity of this Agreement.

Transactions with affiliates clause with provisions for affiliate liability for breach

This clause includes affiliate liability for breach.

The [Party] agrees to ensure that its affiliates are held liable for any breach of this Agreement resulting from their actions. In the event of a breach by an affiliate, the [Party] will take responsibility for remedying the breach, including compensating the other party for any resulting damages.

Transactions with affiliates clause with provision for affiliate conflict of interest disclosure

This clause requires disclosure of conflicts of interest.

The [Party] agrees to disclose any potential conflicts of interest arising from transactions with its affiliates. This includes any financial or business interests that could affect the fairness of the transaction or create a conflict with the terms of this Agreement.

Transactions with affiliates clause with provision for review of affiliate contracts

This clause provides for the review of affiliate contracts.

The [Party] agrees to allow the other party to review any affiliate contracts related to this Agreement. This review will be conducted to ensure compliance with the terms and fairness of the agreements, and the [Party] will cooperate in providing all necessary documents.

Transactions with affiliates clause with restrictions on affiliate conflicts of interest

This clause imposes restrictions on affiliate conflicts of interest.

The [Party] agrees to ensure that its affiliates do not engage in transactions or activities that could result in conflicts of interest with the other party. Any such conflicts must be disclosed and resolved before proceeding with the transaction.

Transactions with affiliates clause with limitation on affiliate pricing models

This clause limits affiliate pricing models.

The [Party] agrees that any pricing model offered to its affiliates will not be more favorable than the pricing offered to non-affiliates under this Agreement. If any affiliate pricing model deviates from this standard, it must be disclosed to and approved by the other party.

Transactions with affiliates clause with non-solicitation of affiliate employees

This clause includes non-solicitation provisions.

The [Party] agrees not to solicit employees or contractors of its affiliates for employment or engagement without prior written consent from the other party. This provision ensures that affiliate transactions do not interfere with the other party’s workforce or business operations.

This clause provides for dispute resolution related to affiliate transactions.

Any disputes arising from transactions with affiliates will be resolved through the dispute resolution mechanism outlined in this Agreement. The [Party] will cooperate fully in resolving such disputes in a fair and transparent manner.

This clause restricts related-party purchases.

The [Party] agrees not to engage in any related-party purchases through affiliates unless the terms are equal to or better than those offered by non-affiliated third parties. Any such purchases must be disclosed to the other party and approved in writing.

This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

Last updated 18 Apr 2025