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Home Q&A Forum Is confidentiality required in an asset purchase agreement?

Business Contracts

Asset Purchase Agreement

Washington

Asked on Oct 13, 2023

Is confidentiality required in an asset purchase agreement?

I am considering purchasing a business asset and the seller has presented me with an Asset Purchase Agreement. I understand that these agreements typically contain confidential information, but I am not sure if confidentiality is required in this particular agreement. I would like to know whether confidentiality is necessary and what the consequences might be if the agreement is not kept confidential.

1 Attorney answer

Answer

Business Contracts

Washington

Answered 260 days ago

Merry A.

ContractsCounsel verified

Business Lawyer
Licensed in Washington
Free Consultation

There is no requirement for confidentiality in ANY type of contract; this is a negotiated term, like all other terms in any contract (except that in some instances, such as WA State Residential Landlord/Tenant contracts, state law may supercede terms in a lease that would violate the law). As far as breach of a confidentiality term (or any other term) in a contract, often the contract itself will state what the consequences may be for a breach - however, if this is not specified, the other party could sue for breach of contract - what a court may decide to award would generally be based on the amount of damages the Plaintiff incurred by having the breach occur. If you are considering buying a business, I urge you to have all paperwork, your business plan, your finances, and all other important documents and information reviewed by a business attorney prior to signing anything at all.

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