Confidentiality Contract between Companies
The Confidentiality Contract between Companies has the purpose to safeguard certain sensitive information (financial details, commercial or technological secrets) which is brought forward in the process of negotiations between companies. This contract is normally used in negotiations taking place prior to making distribution, licence, technological transfer, franchise, manufacturing, joint venture, and mergers and acquisitions agreements, and, generally speaking, for any business agreement which might entail prior exchange of confidential information.
Once the parties and the type of negotiation they are carrying out is identified, the information which is considered to be confidential and the obligations which have to be undertaken to maintain confidentiality, as well as the exceptions which could be applicable, are defined. The Parties are obliged to maintain confidentiality during the negotiation process and also during a subsequent period established in the Contract. The objective of this kind of contract is to ensure that the other Party does not benefit from information received or to prevent it conveying the aforesaid information to the competition in the event of the failure in the negotiations.
Index of the contract