This clause prevents you and the other party from discussing the dispute, the evidence, or the outcome publicly or with anyone outside the legal team. It protects both parties' privacy and business secrets. However, it can work against you if the other party behaves badly—you may be legally forbidden from warning other customers or the public about their conduct, even if they've defrauded you. In the UK, confidentiality clauses are generally enforceable unless they prevent you from disclosing illegal activity (you have a public interest defence).
Carve out exceptions before signing: you should always be able to disclose information to your own accountant, insurance company, and legal advisors without breaching confidentiality. Also negotiate the right to disclose if required by law or regulation. If the other party has a history of disputes, consider whether you want to be silenced if things go wrong. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause prevents you and the other party from discussing the dispute, the evidence, or the outcome publicly or with anyone outside the legal team.
Why should I care about this clause?
It protects both parties' privacy and business secrets.
What are my options?
However, it can work against you if the other party behaves badly—you may be legally forbidden from warning other customers or the public about their conduct, even if they've defrauded you.
How does this affect small businesses?
In the UK, confidentiality clauses are generally enforceable unless they prevent you from disclosing illegal activity (you have a public interest defence).