This agreement should be used in situations where two parties wish to discuss e.g. the prospect of working together at some point in the future and as a result of this, one of the parties will be disclosing confidential information relating to it and its business to the other recipient party.
This agreement sets out the understanding that the recipient party will not use the disclosing party’s confidential information unlawfully to their own benefit. It also makes clear that the recipient shall not divulge any sensitive/ commercial information about the other to a third party during the Term when the obligations of confidentiality subsist.
Note that a Non-Disclosure Agreement (otherwise known as an NDA) is merely a pre-cursor to a main agreement (e.g. a Services Agreement (Order Form and Basic Terms)) and merely protects confidential information (however that may be defined therein) and does not represent anything more than this. However, it is essential especially where discussions and disclosures are of a confidential nature and do NOT progress in to a working and contractual relationship thereafter for whatever reason.
