What is an “Obligations Relating to Confidentiality – Sharing of Information with Third Parties” clause?..
This clause binds the parties to confidentiality regarding the terms of the agreement and could forbid use of the confidential information for purposes unrelated to the transaction itself or the publication of any information without prior consent from the other party, depending on the wording. This is not a complete confidentiality agreement, which VCs and angel investors might be unwilling to sign during the negotiation phase of the transaction. An example of this clause is: The Corporation and the Investor, and any other persons acting on their behalf, shall keep this instrument in strict confidence and shall not use any information or materials for any purpose other than in considering or in connection with the transaction contemplated herein, and shall not issue any public statement concerning this instrument or the transaction contemplated herein without the other party's written consent.
Blogs related to this clause:
Can emails be considered confidential information, and therefore can come under the obligation to return or destroy?
June 1 2017
COURT ORDERS DELETION OF CONFIDENTIAL EMAILS Pakage Apparel Inc [...]
September 3 2015
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