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Disclosure Agreement
I need a disclosure agreement to protect confidential information shared during a potential business partnership, ensuring that all parties involved agree not to disclose or misuse the information for a period of 3 years. The agreement should include clauses for penalties in case of breach and specify the jurisdiction as Germany.
What is a Disclosure Agreement?
A Disclosure Agreement protects confidential information when businesses or individuals need to share sensitive details during negotiations, partnerships, or employment relationships. Under German law, these contracts (often called "Geheimhaltungsvereinbarungen") create clear legal obligations for handling proprietary data, trade secrets, and other valuable information.
The agreement spells out who can access the information, how they must protect it, and what happens if someone breaks these rules. German courts take these agreements seriously, especially since the 2019 Trade Secrets Protection Act (Geschäftsgeheimnisgesetz) strengthened enforcement options. Companies commonly use them before merger talks, during product development, or when bringing on new employees who will handle sensitive data.
When should you use a Disclosure Agreement?
Use a Disclosure Agreement before sharing sensitive business information with potential partners, investors, or employees in Germany. This becomes especially important when discussing new product designs, customer lists, pricing strategies, or proprietary manufacturing processes that fall under the Geschäftsgeheimnisgesetz (Trade Secrets Act).
Key moments to implement these agreements include: starting merger negotiations, beginning joint venture discussions, hiring key personnel who will access confidential data, outsourcing to contractors, or pitching to investors. German courts actively enforce these protections, making them essential before any business conversations where valuable internal information might be exposed. Getting the agreement signed early prevents legal complications and protects your competitive advantage.
What are the different types of Disclosure Agreement?
- Non Disclosure Agreement: Standard one-way agreement protecting a single party's confidential information, commonly used with employees or contractors
- Mutual NDA: Two-way protection where both parties share sensitive information, ideal for business partnerships or joint ventures
- NDA Confidentiality Agreement: Enhanced version with detailed confidentiality provisions, often used in regulated industries or high-stakes negotiations
- Confidentiality Non Disclosure Agreement: Comprehensive agreement with specific trade secret protections under German law
- NDA Agreement Form: Simplified version for routine business interactions, featuring standardized terms and easy customization
Who should typically use a Disclosure Agreement?
- Business Owners & Executives: Initiate and oversee Disclosure Agreements to protect company assets and trade secrets during negotiations or partnerships
- HR Departments: Handle NDAs for new employees, especially those in technical or management positions with access to sensitive information
- Legal Counsel: Draft and review agreements to ensure compliance with German trade secret laws and enforce violations
- Investors & Venture Capitalists: Sign agreements before receiving detailed financial or strategic information about potential investments
- Contractors & Consultants: Bound by NDAs when accessing internal systems or proprietary processes during project work
- Research & Development Teams: Use agreements to protect intellectual property during product development and testing phases
How do you write a Disclosure Agreement?
- Define Scope: List exactly what information needs protection - trade secrets, customer data, processes, or intellectual property
- Identify Parties: Gather full legal names and addresses of all involved parties, including their authorized representatives
- Set Time Limits: Determine how long the confidentiality obligations should last under German law
- Specify Access Rights: Detail who can access the information and under what circumstances
- Document Return Policy: Outline procedures for returning or destroying confidential materials after the agreement ends
- Use Our Platform: Generate a legally-sound Disclosure Agreement that automatically includes all required elements under German law
- Review Details: Double-check all specifics before finalizing to ensure accuracy and enforceability
What should be included in a Disclosure Agreement?
- Identification of Parties: Full legal names, addresses, and authorized representatives of all involved entities
- Definition of Confidential Information: Clear scope of protected data under German Trade Secrets Act standards
- Permitted Use Clause: Specific terms outlining how confidential information may be accessed and used
- Duration & Territory: Time period and geographical scope of confidentiality obligations
- Data Protection Measures: Required security protocols compliant with GDPR and German data protection laws
- Return/Destruction Terms: Procedures for handling confidential materials after agreement termination
- Breach Consequences: Specific penalties and enforcement mechanisms under German law
- Governing Law: Clear statement designating German law and jurisdiction
What's the difference between a Disclosure Agreement and an Advisor Agreement?
A Disclosure Agreement is often confused with an Advisor Agreement, but they serve distinct purposes in German business law. While both protect sensitive information, their scope and application differ significantly.
- Primary Purpose: Disclosure Agreements focus solely on protecting confidential information, while Advisor Agreements establish a broader consulting relationship that includes confidentiality as just one component
- Duration of Obligations: Disclosure Agreements typically remain active for a set period after information sharing ends, while Advisor Agreements are tied to the advisory relationship's timeline
- Scope of Protection: Disclosure Agreements cover specific confidential information, whereas Advisor Agreements address multiple aspects including compensation, services, and intellectual property rights
- Legal Framework: Disclosure Agreements align primarily with German trade secret laws, while Advisor Agreements fall under service contract regulations (Dienstvertrag) in the German Civil Code
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