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Confidentiality Agreement For Sale Of Business

Confidentiality Agreement For Sale Of Business Template for United Arab Emirates

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Key Requirements PROMPT example:

Confidentiality Agreement For Sale Of Business

"I need a Confidentiality Agreement For Sale Of Business under UAE law for my technology company's potential sale to a multinational corporation, with specific provisions for protecting our software IP and customer data, plus data room rules as we plan to start due diligence in March 2025."

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Document background
The Confidentiality Agreement For Sale Of Business is a critical document used in the UAE business sale context when a company or business owner is considering selling their business and needs to share sensitive information with potential buyers. This agreement is essential before commencing due diligence and detailed sale negotiations, as it protects confidential business information, including financial data, customer lists, trade secrets, and operational details. The document is structured to comply with UAE Federal Laws, including Commercial Companies Law (Federal Law No. 32 of 2021) and relevant data protection regulations. It's particularly important in the UAE market where business relationships and confidentiality are highly valued, and breach of confidence can have serious legal and commercial consequences. The agreement typically precedes other transaction documents and helps establish trust between parties while providing legal remedies under UAE law if confidentiality is breached.
Suggested Sections

1. Parties: Identification of the disclosing party (seller), receiving party (potential buyer), and any guarantors or related parties

2. Background: Context of the proposed business sale and purpose of the agreement

3. Definitions: Definitions of key terms including Confidential Information, Permitted Purpose, Representatives, and Business

4. Confidentiality Obligations: Core obligations regarding non-disclosure, permitted uses, and security measures

5. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to professional advisors and as required by law

6. Protection of Confidential Information: Specific measures required to protect confidential information

7. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information after discussions end

8. Duration of Obligations: Time period for which confidentiality obligations remain in force

9. Non-Circumvention: Prohibition on using information to circumvent the disclosing party in business dealings

10. Remedies: Available remedies under UAE law for breach of confidentiality

11. Governing Law and Jurisdiction: Specification of UAE law as governing law and jurisdiction for disputes

Optional Sections

1. Non-Solicitation: Prevents approaching employees, clients, or suppliers - include when protecting business relationships is crucial

2. Exclusivity Period: Grants exclusive negotiation rights - include when buyer requires exclusive dealing period

3. Data Protection Compliance: Specific provisions for handling personal data - include when personal data is involved

4. Free Zone Provisions: Additional provisions for free zone requirements - include when business is in a UAE free zone

5. Assignment: Rights to assign the agreement - include when either party may need to transfer rights

6. Representatives Undertaking: Additional obligations for representatives - include when wide access to information is needed

7. Announcements: Control over public statements - include for high-profile transactions

Suggested Schedules

1. Schedule 1 - Description of Business: Detailed description of the business being sold

2. Schedule 2 - Confidential Information: Specific categories of confidential information covered

3. Schedule 3 - Authorized Representatives: List of authorized representatives who may access confidential information

4. Schedule 4 - Security Measures: Required security protocols for handling confidential information

5. Appendix A - Form of Representative Undertaking: Template confidentiality undertaking for representatives to sign

6. Appendix B - Data Room Rules: Rules and procedures for accessing virtual or physical data room

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions




































Clauses




























Relevant Industries

Manufacturing

Retail

Technology

Healthcare

Real Estate

Financial Services

Hospitality

Construction

Energy

Professional Services

Transportation

E-commerce

Media and Entertainment

Education

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Risk and Compliance

Business Development

Strategy

Operations

Company Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Development Director

Investment Banker

Due Diligence Manager

Mergers & Acquisitions Director

Business Development Manager

Legal Director

Finance Director

Company Secretary

Risk Manager

Compliance Officer

Operations Director

Strategy Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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