Friday 27 July 2012

Status of receiver in confidentiality contract

Should the receiver be protected in confidentiality agreements?
 
Majority of the confidentiality agreements made these days are simple. They are problematic for the receiver in that way because they do not protect him or her. There should be adequate clauses in the confidentiality agreements that should protect the receiver in cases where no wrong is done by him or her. The receiver is legally bound to protect the information and data which he/she receives from the party in the contract. If any information or data is received by receiver from the third party then the doctrine of privities of contract doesn’t apply. For the same reasons the agreement should contain adequate clauses for that.
 
There are always chances of a receiver that he/she might get information or data from other sources then the parties in the agreement. In such cases the receiver is not legally bound to keep such information so obtained as a secret. Even the moral obligation is not there in many instances and circumstances come in which such receiver has to disclose such information to third parties. In such cases the receiver should be protected according to the terms of the agreement so that no problem is faced if no wrong is done by such receiver.