ITIC is increasingly asked to comment on confidentiality agreements, sometimes known as nondisclosure agreements.
The use of confidentiality agreements has always been common when parties are considering doing business but need to provide information to the other party before they enter a formal contract. In these circumstances the party providing the information will protect their interests by insisting the receiving party signs a stand-alone confidentiality agreement. Historically this has been associated with transactions such as the sale of corporations, but increasingly ITIC is seeing their use in a wide range of circumstances involving Naval Architects, Consultants and other advisers.
The important consideration is to ensure that the wording of the agreement does not unnecessarily restrict the Member’s ability to do business with other clients.