Stock Business

 Confidentiality Agreement Related to Proposed Purchase of Corporate Business through Purchase of Stock
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State:
Multi-State
Control #:
US-0220BG
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Description

A confidentiality agreement is an agreement between at least two persons that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes. However, when access to the information is to be restricted from a third party a confidentiality clause is added in the contract. It is a contract through which the parties agree not to disclose information covered by the agreement. Generally, such clauses are added in contracts between companies. However, this clause can be added in employment contracts also.

In making the decision to purchase an existing business, it is necessary for the Purchaser to determine whether he or she is going to seek to purchase the assets of the business, or the stock of the business entity. An asset purchase involves the purchase of the selling company’s assets — including facilities, vehicles, equipment, and stock or inventory. A stock purchase involves the purchase of the selling company’s stock only.

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