Confidentiality Contract Template for Germany

This Confidentiality Contract is essential for business relationships where sensitive information needs to be shared under German law protection. It's commonly used before commercial negotiations, during due diligence processes, or in ongoing business relationships where proprietary information exchange is necessary. The agreement ensures compliance with the German Trade Secrets Act (GeschGehG) and relevant provisions of the German Civil Code (BGB), while also considering EU regulations such as GDPR where applicable. It's designed to protect various types of confidential information including trade secrets, technical know-how, business strategies, and customer data. The document is particularly relevant in the German business context where specific legal requirements for trade secret protection must be met, and contractual penalties (Vertragsstrafe) are commonly included as enforcement mechanisms.

1. Parties: Identification of the contracting parties, including full legal names, addresses, and registration details (as required by German law)

2. Background: Context of the confidentiality agreement, including the purpose of information sharing and the business relationship between the parties

3. Definitions: Clear definitions of key terms, particularly 'Confidential Information', 'Authorized Representatives', and 'Permitted Purpose', aligned with GeschGehG requirements

4. Scope of Confidential Information: Detailed description of what constitutes confidential information, including explicit categories and exclusions

5. Confidentiality Obligations: Core obligations regarding the handling, protection, and non-disclosure of confidential information

6. Permitted Disclosures: Circumstances under which confidential information may be disclosed, including to authorized representatives and when required by law

7. Security Measures: Required technical and organizational measures for protecting confidential information

8. Return or Destruction of Confidential Information: Obligations regarding the handling of confidential information upon termination or request

9. Term and Termination: Duration of the agreement and confidentiality obligations, including survival of obligations post-termination

10. Breach and Remedies: Consequences of breach, including injunctive relief and contractual penalties (Vertragsstrafe) as per German law

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction of German courts