Clear explanations of 500+ contract clauses, written in plain English for businesses and individuals.
This clause says you're allowed to develop similar products or ideas on your own, without owing anything to the other party, even if they shared confidential information with you. It protects you from being trapped—for instance, if a company shares t
Read More →This clause lets you use information you already knew before the contract started, even if it's marked confidential. Without this exception, you could be sued for using your own pre-existing knowledge. For example, if you're a software developer and
Read More →This clause says that if information becomes public (through no fault of the other party), they are no longer bound by confidentiality—they can use or share it freely. It's high-risk because "public record" can be interpreted very broadly, and once i
Read More →This clause allows the other party to share your confidential information with credit rating agencies (like Moody's or Standard & Poor's) or other financial rating organizations. It's high-risk because rating agencies publish reports that influence w
Read More →This clause allows a financial company (like a private equity firm or investment fund) to share your confidential information with its investors or limited partners who have money invested in the fund. It's high-risk because investors are external pa
Read More →This clause lets you share confidential information with your parent company, subsidiary companies, or sister companies (your "affiliates"). It's high-risk because affiliates are separate legal entities—sharing with them is not the same as sharing wi
Read More →This clause allows you to share confidential information with your lawyers, accountants, and other professional advisers who help you perform the contract. It matters because you cannot do business without getting professional advice, and the law rec
Read More →This clause allows your external auditors (accountants who verify your financial records) to see confidential information as part of their audit work. It matters because auditors need access to sensitive information to do their job properly, and if t
Read More →This clause allows you to share confidential information with tax authorities like HMRC (in the UK) or the IRS (in the US) when required by tax law. It matters because tax authorities have legal power to demand financial records and information, and
Read More →This clause permits you to disclose confidential information if a court orders you to do so in a lawsuit, or if you need to disclose it to defend yourself in legal proceedings. It matters because courts can compel testimony and document production th
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