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What is a Disclosure Agreement?

A Disclosure Agreement legally protects confidential information when companies or individuals need to share sensitive details. In Swiss business practice, these contracts establish clear rules about what information must stay private, who can access it, and how they must handle it.

Swiss law treats these agreements as binding contracts under the Code of Obligations, making them essential tools for protecting trade secrets, intellectual property, and business data. They help organizations collaborate safely by spelling out specific duties, time limits, and consequences for breaking confidentiality - from small startups sharing product designs to large corporations discussing merger plans.

When should you use a Disclosure Agreement?

Use a Disclosure Agreement before sharing sensitive business information with potential partners, investors, or employees in Switzerland. This protection becomes crucial when discussing trade secrets, financial data, customer lists, or technical innovations that give your company a competitive edge.

The timing matters most during early-stage negotiations, merger talks, or when bringing on new team members who need access to proprietary information. Swiss companies often require these agreements before starting due diligence processes, product development collaborations, or strategic partnerships. This step prevents unauthorized sharing of confidential details and creates clear legal obligations under Swiss law.

What are the different types of Disclosure Agreement?

Who should typically use a Disclosure Agreement?

  • Business Owners and Executives: Initiate and approve Disclosure Agreements to protect company assets and trade secrets during negotiations or partnerships
  • Legal Counsel: Draft, review, and customize agreements to ensure compliance with Swiss law and adequate protection of client interests
  • Employees and Contractors: Sign agreements when accessing sensitive company information or working on confidential projects
  • Investors and Financial Advisors: Participate in due diligence under strict confidentiality terms
  • Technology Companies: Protect intellectual property and development plans when collaborating with external partners or vendors

How do you write a Disclosure Agreement?

  • Identify Parties: Gather full legal names, addresses, and roles of all involved parties
  • Define Scope: List specific confidential information to be protected, including trade secrets, processes, or data
  • Set Duration: Determine how long the confidentiality obligations will remain in effect under Swiss law
  • Outline Permissions: Specify who can access the information and under what circumstances
  • Add Safeguards: Include specific security measures for handling sensitive data
  • Use Our Platform: Generate a legally-sound Disclosure Agreement that automatically includes all required elements for Swiss compliance

What should be included in a Disclosure Agreement?

  • Identification Details: Full legal names and addresses of all parties, including authorized representatives
  • Confidential Information: Clear definition of protected information and permitted uses under Swiss law
  • Duration Clause: Specific timeframe for confidentiality obligations and any survival terms
  • Security Measures: Required steps for protecting and handling confidential data
  • Return/Destruction: Procedures for handling confidential materials after agreement ends
  • Breach Consequences: Remedies and penalties under Swiss law for unauthorized disclosure
  • Governing Law: Explicit reference to Swiss jurisdiction and applicable cantonal courts

What's the difference between a Disclosure Agreement and a Consultancy Agreement?

A Disclosure Agreement is often confused with a Consultancy Agreement in Swiss business practice, but they serve distinct purposes and protect different interests. While both involve confidential information, their core functions and legal frameworks differ significantly.

  • Scope and Purpose: Disclosure Agreements focus solely on protecting confidential information, while Consultancy Agreements cover the entire service relationship, including deliverables, payment terms, and project scope
  • Duration: Disclosure obligations often extend years beyond the information sharing, while Consultancy Agreements typically end when the project concludes
  • Legal Framework: Under Swiss law, Disclosure Agreements fall under information protection statutes, while Consultancy Agreements are governed by service contract provisions
  • Enforcement Focus: Disclosure Agreements emphasize preventing information leaks and specify damages, while Consultancy Agreements focus on service quality and delivery standards

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