NDA – Non Disclosure Letter (Company Disclosing to Company)

Updated for 2014

This Non-Disclosure Letter obliges the recipients of confidential information to maintain the confidentiality of that information and to ensure that all of its representatives do likewise.

It also contains restrictive covenants to help ensure that the recipients do not use the confidential information to gain access to or solicit employees, suppliers or customers of the disclosing party.

 

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From time to time, businesses and people exchange confidential information for the purpose of evaluating the prospect of working together on a joint venture, buying or selling a company, business or asset, and for many other reasons. In disclosing confidential information, the party making the disclosures will want to ensure that the receiving party keeps that information confidential and uses it only for the purpose for which it was disclosed. In order to ensure this, the parties usually enter into a binding confidentiality agreement or non-disclosure agreement (commonly called an “NDA”).

The terms of this Non-Disclosure Letter regulate the manner in which the receiving party and its representatives deal with the confidential information. Moreover, it offers the disclosing party strong remedies to protect its interests in the event that there is a breach of any of the provisions of the confidentiality agreement by either the receiving party or its representatives.

There are some exceptions to the confidentiality requirements under this Non-Disclosure Letter. Where either the receiving party or any of its representatives are required to disclose the confidential information to a regulatory body, to a court or pursuant to an applicable law, it will be permitted to do so provided that (i) the disclosing party is afforded an opportunity to have an input in making that disclosure and (ii) the disclosure is limited to only the information that is required to be disclosed pursuant to the disclosure obligation.

The Non-Disclosure Letter also sets out the manner in which confidential information should be returned to the disclosing party and/or destroyed in the event of a termination of discussions between the parties or otherwise.

The Non-Disclosure Letter also includes standard boiler plate clauses such as in relation to notice requirements, governing laws, etc.

This particular Non-Disclosure Letter is designed for use in circumstances where one party wishes to disclose confidential information to another party for a specific purpose (as described in the Non-Disclosure Letter itself).

Detailed instructions on each of the paragraphs in this Non-Disclosure Letter and on completing the Non-Disclosure Letter are contained in the notes that accompany the letter.

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