Wednesday, 31 January 2018

Confidential Information

Information plays an important role across many areas of society and from a Business perspective can be a valuable asset.

Depending on the situation, it might be necessary to keep certain information out of the public domain by maintaining a level of secrecy. For example, the information might relate to:

  • New products or services yet to be introduced to the market;
  • Technical know-how;
  • Databases;
  • Financial details about an organisation;
  • Etc.
Business owners seeking to keep their information confidential when dealing with third parties may enter into a Confidentiality or Non-Disclosure Agreement.

Where a third party (“Receiving Party”) breaches their confidentiality obligations, various remedies maybe available to the affected party (“Disclosing Party”), such as:

  • Breach of contract:
    • the remedies for a breach of the Confidentiality Agreement may be set out in the agreement itself, which could include a right of termination of some other ancillary agreement;
    • damages - a monetary order by the Court to compensate for losses incurred);
    • injunction - being an order of the Court that a third party cease using the confidential information or take some other action;
  • An action in common law referred to as “Breach of Confidence”.
In order for the Disclosing Party to avail themselves of the remedies, certain criteria must be met. For example, in a breach of confidence action there are typically a number of elements that the Courts have said need to be satisfied:
  • The information must have the necessary quality of confidence;
  • The confidential information was improperly disclosed;
  • There was a breach of the obligation of confidence;
  • Damage was suffered by the Disclosing Party by the Receiving Party as a result of the breach of confidence.
The circumstances in each case will determine if a breach has occurred and the remedy available.

Contact us for further information:


The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.

Copyright © Greyson Legal 2018, All rights reserved.

No comments:

Post a Comment