The Bilateral Confidentiality Agreement serves as a crucial legal instrument in Malaysian business transactions where parties need to share sensitive information while maintaining its confidentiality. This document is essential when entering into preliminary business discussions, due diligence processes, joint ventures, or any situation requiring the exchange of proprietary information. The agreement, governed by Malaysian law, provides comprehensive protection by defining confidential information, establishing clear obligations for its handling, and specifying remedies for unauthorized disclosure. It incorporates relevant Malaysian legal requirements, including provisions from the Contracts Act 1950 and Personal Data Protection Act 2010, making it suitable for both domestic and international business relationships involving Malaysian entities.
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1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers (if companies), and registered addresses
2. Background: Context of the agreement, purpose of sharing confidential information, and nature of the business relationship
3. Definitions: Clear definitions of key terms, especially 'Confidential Information', 'Representatives', 'Permitted Purpose', and other important terms used in the agreement
4. Scope of Confidentiality: Detailed description of what constitutes confidential information under the agreement
5. Obligations of Confidentiality: Core confidentiality obligations, including use restrictions, security measures, and standard of care required
6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to employees, advisors, or as required by law
7. Term and Survival: Duration of the agreement and which obligations survive termination
8. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information upon termination or request
9. Remedies: Rights and remedies in case of breach, including injunctive relief
10. General Provisions: Standard boilerplate clauses including governing law, jurisdiction, entire agreement, and amendments
1. Non-Solicitation: Prevents parties from soliciting each other's employees or customers. Include when there's significant employee interaction or customer exposure
2. Non-Competition: Restricts competitive activities. Include when sharing highly sensitive commercial information
3. Data Protection Compliance: Specific obligations regarding personal data under PDPA. Include when confidential information includes personal data
4. Export Control: Compliance with export control laws. Include for international agreements or regulated technologies
5. Intellectual Property Rights: Clarification of IP ownership and rights. Include when confidential information includes IP or potential IP
6. Force Majeure: Provisions for unforeseen circumstances. Include in long-term NDAs or when regulatory compliance might be affected by external events
7. Independent Contractor Relationship: Clarifies that the agreement doesn't create any other business relationship. Include when parties might work closely together
1. Schedule 1 - Description of Confidential Information: Detailed list or categories of confidential information covered by the agreement
2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information
3. Schedule 3 - Security Protocols: Specific security measures and protocols for handling confidential information
4. Schedule 4 - Permitted Purpose Details: Detailed description of the specific purpose(s) for which confidential information may be used
5. Appendix A - Form of Acknowledgment: Template for acknowledgment to be signed by representatives who will have access to confidential information
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Relevant Teams
Legal
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Research and Development
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Corporate Strategy
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