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LEGAL DICTIONARY

Disclosing Party

What Is a Disclosing Party?

A disclosing party is an individual or entity that provides confidential information to another party in a non-disclosure agreement.

A non-disclosure agreement (also called a secrecy agreement or a confidentiality agreement) is a legal contract that contains information that all the parties deem confidential. All parties agree not to share the information with anyone outside of the agreement. This document is often used in employment contracts.

Examples of this type of confidential information include:

  • Strategic plans
  • Marketing strategies
  • Sales plans
  • Proprietary software
  • List of clients/customers
  • Techniques, formulas, recipes
  • Proprietary relationships
  • Possible future patents

A non-disclosure agreement is in effect for a set period that continues throughout employment or business relationship and for a length of time after that relationship has ended.

CTA: Start your own Non-Disclosure Agreement

Who Is the Disclosing Party in a Non-Disclosure Agreement?

There are two parties in a non-disclosure agreement: the disclosing party and the receiving party. In an employer-employee relationship, the employer would be the disclosing party, and the employee would be the receiving party of the confidential information.

When drawing up a non-disclosure agreement, it is important to be consistent in the use of these terms.

The goal of the contract is to limit the disclosure of private information. As a result, the fewer people who have access to the information, the greater the chance that the information will remain protected.

What Does Disclosing Party Mean in Law?

A non-disclosure contract is a legal agreement that can be upheld in a court of law. In order for the contract to be legally valid, it must contain the following elements:

  • Identification – The contract must clearly identify all parties involved.
  • Agreement – The contract must be a mutual agreement between all parties.
  • Consideration – The contract must include a promise to exchange something of value. The agreement does not have to include the exchange of anything of monetary value, such as goods and services; it can be about ideas and information.
  • Definition – The contract must clearly define what information is confidential and must not be shared.
  • Contract – The parties must understand that the agreement is binding and that breaking the contract is punishable by law.
  • Lawful object – The relationship outlined in the contract must follow both federal and state laws.

The contract should also include details on how any disputes that may occur in the future will be handled and which party pays attorney fees in the case of a dispute. It also should explain the course of action if either party violates the terms of the agreement.

In summary, an NDA can serve as a way to build and maintain trust in a new business relationship with a disclosing party.

However, the agreements sometimes can prevent top-tier talent from joining an organization since these individuals know they will be limited in what they can discuss about their work in the future. Also, if current employees are asked to sign a non-disclosure agreement, it may make them feel their employer does not trust them.

Helpful Resources:

U.S. Securities and Exchange Commission - Confidentiality Agreement

What Is a Disclosing Party?

A disclosing party is an individual or entity that provides confidential information to another party in a non-disclosure agreement.

A non-disclosure agreement (also called a secrecy agreement or a confidentiality agreement) is a legal contract that contains information that all the parties deem confidential. All parties agree not to share the information with anyone outside of the agreement. This document is often used in employment contracts.

Examples of this type of confidential information include:

  • Strategic plans
  • Marketing strategies
  • Sales plans
  • Proprietary software
  • List of clients/customers
  • Techniques, formulas, recipes
  • Proprietary relationships
  • Possible future patents

A non-disclosure agreement is in effect for a set period that continues throughout employment or business relationship and for a length of time after that relationship has ended.

CTA: Start your own Non-Disclosure Agreement

Who Is the Disclosing Party in a Non-Disclosure Agreement?

There are two parties in a non-disclosure agreement: the disclosing party and the receiving party. In an employer-employee relationship, the employer would be the disclosing party, and the employee would be the receiving party of the confidential information.

When drawing up a non-disclosure agreement, it is important to be consistent in the use of these terms.

The goal of the contract is to limit the disclosure of private information. As a result, the fewer people who have access to the information, the greater the chance that the information will remain protected.

What Does Disclosing Party Mean in Law?

A non-disclosure contract is a legal agreement that can be upheld in a court of law. In order for the contract to be legally valid, it must contain the following elements:

  • Identification – The contract must clearly identify all parties involved.
  • Agreement – The contract must be a mutual agreement between all parties.
  • Consideration – The contract must include a promise to exchange something of value. The agreement does not have to include the exchange of anything of monetary value, such as goods and services; it can be about ideas and information.
  • Definition – The contract must clearly define what information is confidential and must not be shared.
  • Contract – The parties must understand that the agreement is binding and that breaking the contract is punishable by law.
  • Lawful object – The relationship outlined in the contract must follow both federal and state laws.

The contract should also include details on how any disputes that may occur in the future will be handled and which party pays attorney fees in the case of a dispute. It also should explain the course of action if either party violates the terms of the agreement.

In summary, an NDA can serve as a way to build and maintain trust in a new business relationship with a disclosing party.

However, the agreements sometimes can prevent top-tier talent from joining an organization since these individuals know they will be limited in what they can discuss about their work in the future. Also, if current employees are asked to sign a non-disclosure agreement, it may make them feel their employer does not trust them.

Helpful Resources:

U.S. Securities and Exchange Commission - Confidentiality Agreement