Commitment to confidentiality in contract negotiations

Abstract

The negotiation stage is one of the most important and dangerous stages in the contract, consists of several obligations which are respected by negotiators for the aim of reaching the final version of the contract and satisfying both parties alongside reserving their interests and rights, including the obligation of confidentiality. The latter is a matter of concern to the majority of modern legislations. On this basis, the present research paper addresses the confidentiality principle which is followed by the negotiating parties, where the negotiator refrains from disclosing the information s/he posses, keeps it confidential and does not use it for his/her own benefit without the permission of its owner who seeks compensation due to the contract s economic value. Moreover, it is pre-contractual legal obligation that the recipient must fulfill in accordance with good faith. The research also sheds light on the applications of confidentiality in international trade contracts that require special conditions in the process of application and achievement of their goal, in addition to technology transfer contracts, which are among the major contracts, whose techniques are characterized by modernity and complexity. The breach of secrets at this stage results in the emergence of civil liability in contract or tort that requires compensation as a penalty for non-compliance with confidentiality.