An agreement in which one party is
entrusted with secret or private matters by
another. In real estate negotiations,
commercial brokerages and their salespeople
may become involved in confidentiality
agreements relating to the listing and
selling of property. For example, a listing
salesperson may have to inspect books of
account or other documentation concerning a
commercial enterprise as part of agency
duties. Conversely, a company considering
relocation may provide a buyer
representative with confidential,
proprietary information, and/or trade
secrets in trust and confidence.
Wordings of confidentiality agreements
vary considerably as most are drafted to
address specific purposes, however, most
follow a similar structure:
Parties
The agreement sets out the parties to
the agreement, e.g., the corporation and the
commercial brokerage including applicable
salesperson(s).
Purpose
The reason that confidential information
is provided, e.g., to search for and
negotiate a site for an industrial facility.
The information referenced is typically
included by way of an attached list. The
agreement may also allow the commercial
brokerage to inspect the premises and talk
with suppliers, employees, or other
representatives of the company.
Provisions
Hold all information confidential
and to use such information solely for
the intended purpose.
Return all documentation at the
conclusion of negotiations (or on
demand).
Make no copies or retain any
information what-so-ever.
Not disclose information to any
other parties (unless the agreement also
binds such parties).
In the event of a breach,
confidentiality agreements commonly include
reference to the rights of the injured party
to seek relief through legal proceedings.
Most agreements provide that any information
known by the commercial brokerage or
salesperson(s) before the agreement or
generally known within the marketplace do
not fall within the scope of such
agreements.
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