This clause requires you to get written permission from the other party before you can tell the public (through a press release or media) anything about the deal. It matters because the other party controls the narrative and timing of the announcement, which affects their reputation and stock price if they're a public company. Legally, this is a restriction on your free speech, but courts in both the UK and US allow these restrictions in contracts because both parties agreed to them. Without this clause, one party could announce bad news in a way that damages the other party's business.
This is high-risk, so negotiate hard. Insist on a clause that lets you issue a press release after a short waiting period (5-10 business days) if the other party hasn't approved or rejected it. Add an exception allowing you to disclose the deal if required by law (for example, if you're a public company that must tell shareholders). Never agree to a complete ban on announcements—you need flexibility for your own business needs. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires you to get written permission from the other party before you can tell the public (through a press release or media) anything about the deal.
Why should I care about this clause?
It matters because the other party controls the narrative and timing of the announcement, which affects their reputation and stock price if they're a public company.
What are my options?
Legally, this is a restriction on your free speech, but courts in both the UK and US allow these restrictions in contracts because both parties agreed to them.
How does this affect small businesses?
Without this clause, one party could announce bad news in a way that damages the other party's business.