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 Members.
Consultants and other advisers needing access to information to enable them to provide their services are frequently asked to sign confidentiality agreements. Increasingly shipbrokers providing valuation services receive the same request. 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.
ITIC has created an e-learning seminar in which common provisions will be explained and some of the pitfalls to avoid will be outlined.
Everyone makes mistakes...
Could your business deal with a claim for negligence?