When two parties enter into a settlement agreement, it is common for there to be a confidentiality clause included. This clause is designed to protect both parties by ensuring that the terms of the settlement agreement remain private and not shared with anyone who is not involved in the case. In this article, we will provide an example of what a confidentiality clause in a settlement agreement may look like.
Confidentiality Clause Example:
The parties agree that the terms of this settlement agreement, including any financial or other compensation paid to either party, shall be kept confidential and shall not be disclosed to any third party without the express written consent of both parties, except as required by law.
The parties further agree that any breach of this confidentiality clause will result in irreparable harm and damages to the non-breaching party, and the non-breaching party shall be entitled to seek injunctive relief and any other damages available at law or in equity.
The parties acknowledge and agree that this confidentiality clause applies not only to the terms of this settlement agreement but also to any negotiations, discussions, or communications related to this settlement agreement.
In the event that either party is required by law to disclose the terms of this settlement agreement, that party shall notify the other party in writing prior to any such disclosure, and the parties shall work together to seek appropriate protections and/or confidential treatment of the settlement terms.
This confidentiality clause shall survive the termination of this settlement agreement and shall remain binding on the parties, their agents, representatives, successors, and assigns.
A confidentiality clause is an important component of a settlement agreement that protects the privacy and interests of both parties. It is essential to consult with an experienced attorney when drafting or negotiating a settlement agreement to ensure that the confidentiality clause and all other provisions adequately protect your rights and interests.