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Legal Disclosure Agreement

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LEGAL DISCLOSURE AGREEMENT

This Legal Disclosure Agreement ("Agreement") is made and entered into as of Effective Date: by and between Disclosing Party: , entity type: , with principal place of business at ; and Receiving Party: , entity type: , with principal place of business at .

RECITALS

WHEREAS, Disclosing Party possesses certain confidential, proprietary, legal, investigative, or privileged information and materials described below that are valuable to Disclosing Party and not generally known to the public; and

WHEREAS, Receiving Party desires to receive such information for the limited purpose of evaluating, advising on, or performing legal review, representation, settlement analysis, compliance review, or other lawful professional services as set forth herein; and

WHEREAS, the parties wish to define their respective rights and obligations with respect to the disclosure and handling of such information;

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Confidential Information" means all information disclosed by Disclosing Party to Receiving Party, whether disclosed orally, visually, in writing, electronically, or by inspection of tangible objects, including but not limited to legal memoranda, client lists, financial records, settlement terms, privileged communications, litigation strategies, investigative reports, technical data, and other information that is identified as confidential or that reasonably should be understood to be confidential. A non-exhaustive description of disclosed materials:

1.2 "Permitted Purpose" means the specific legal, compliance, advisory, evaluation, or other professional purpose specified by Disclosing Party at the time of disclosure and recorded in writing as required by this Agreement.

2. SCOPE OF DISCLOSURE

2.1 Disclosing Party shall disclose Confidential Information to Receiving Party solely for the Permitted Purpose. Receiving Party shall not use Confidential Information for any other purpose without the prior written consent of Disclosing Party.

2.2 Method of disclosure:

3. CONFIDENTIALITY OBLIGATIONS

3.1 Receiving Party shall hold and maintain the Confidential Information in strict confidence and shall disclose such information only to employees, agents, counsel, or independent contractors who have a need to know and who are bound by confidentiality obligations at least as protective as those contained herein.

3.2 Receiving Party shall use reasonable measures, at least the same degree of care it uses to protect its own confidential information, to prevent unauthorized disclosure, copying, or use of Confidential Information, and shall promptly notify Disclosing Party of any unauthorized use or disclosure known to Receiving Party.

4. EXCLUSIONS

4.1 Confidential Information does not include information that: (a) is or becomes generally available to the public other than through a breach of this Agreement by Receiving Party; (b) was known to Receiving Party prior to disclosure, as demonstrated by contemporaneous written records; (c) is lawfully obtained by Receiving Party from a third party without restriction; or (d) is independently developed by Receiving Party without use of or reference to the Confidential Information.

5. REQUIRED DISCLOSURE

5.1 If Receiving Party is required by law, court order, or regulatory process to disclose Confidential Information, Receiving Party shall provide prompt written notice to Disclosing Party (to the extent permitted) and shall cooperate with Disclosing Party to seek a protective order or other remedy to limit disclosure. If disclosure is compelled, Receiving Party shall disclose only that portion which is legally required and shall use reasonable efforts to obtain confidential treatment of the disclosed information.

6. RETURN OR DESTRUCTION

6.1 Upon written request of Disclosing Party or upon termination of this Agreement, Receiving Party shall, within days, return or destroy all tangible Confidential Information and shall certify in writing the return or destruction of such materials, except that Receiving Party may retain one archival copy solely to comply with internal record-keeping, audit, or legal hold obligations provided such retained copy remains subject to this Agreement.

7. OWNERSHIP; NO LICENSE

7.1 All Confidential Information shall remain the sole property of Disclosing Party. No rights, implied or otherwise, under any patent, trademark, copyright, trade secret, or other intellectual property right are granted by this Agreement, and no license to use Confidential Information is conferred except as expressly provided for the Permitted Purpose.

8. TERM AND TERMINATION

8.1 This Agreement shall commence on the Effective Date and shall continue in effect for a period of years, unless earlier terminated by either party upon thirty (30) days' prior written notice. The confidentiality obligations with respect to Confidential Information disclosed during the term shall survive termination for a period of five (5) years, or such longer period as required to protect privileged or highly sensitive materials under applicable law.

9. REMEDIES

9.1 The parties acknowledge that monetary damages may be inadequate to remedy a breach of this Agreement and that Disclosing Party shall be entitled to seek injunctive or other equitable relief in addition to any other remedies available at law or in equity. Receiving Party shall be liable for all direct damages and reasonable attorneys' fees arising from a breach of this Agreement.

10. NOTICES

11. AMENDMENTS; WAIVER; COUNTERPARTS

11.1 No amendment or modification of this Agreement shall be valid unless in writing and signed by authorized representatives of both parties. A waiver of any breach shall not constitute a waiver of any subsequent breach. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

12. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

12.1 This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction specified below, without regard to its conflicts of law principles. Governing Jurisdiction:

12.2 If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral, relating to the subject matter.

13. MISCELLANEOUS PROVISIONS

13.1 Assignment: Neither party may assign its rights or delegate its duties under this Agreement without the prior written consent of the other party, except to an affiliate or successor in connection with a merger, sale of substantially all assets, or consolidation.

13.2 Attorneys' Fees: In the event of litigation or arbitration arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs.

Disclosing Party (Printed Name):

By:

Date:

Receiving Party (Printed Name):

By:

Date:

Enter text✕

What a Legal Disclosure Agreement Is and When It Applies

A Legal Disclosure Agreement is a written statement that identifies material facts, known risks, or relevant background information one party must disclose to another before or during a transaction. These agreements are commonly used in transactions, regulatory filings, real estate closings, corporate due diligence, and employment or contractor relationships. The document allocates information duties, records what was disclosed, and helps manage post-transaction disputes by documenting knowledge and timing of disclosures. Electronic execution is generally valid under the ESIGN Act (15 U.S.C. ch. 96) and state UETA rules when the four-part e-signature test is satisfied.

Why a Clear Disclosure Agreement Matters

A well-drafted Legal Disclosure Agreement reduces dispute risk by documenting material facts, allocation of responsibility, and the timing of notice, creating a clearer basis for enforcement and remedies under contract law.

Why a Clear Disclosure Agreement Matters

Who Typically Prepares and Signs These Agreements

Different industries adapt the form to regulatory needs; legal review is recommended when disclosures affect statutory duties or trigger specific regulatory protections.

  • Corporate counsel preparing disclosures for M&A, securities, or investor materials.
  • Real estate brokers or sellers completing property condition disclosures.
  • Human resources or hiring managers disclosing employment-related conditions.

Representative Signers and Their Roles

General Counsel

General Counsel or outside counsel typically drafts or reviews disclosures to ensure completeness, align statements with corporate knowledge policies, and reduce litigation exposure through careful language and revision tracking.

Compliance Officer

Compliance Officers verify regulatory items, confirm that required notices (for example HIPAA or consumer-finance disclosures) are included, and maintain the audit trail and retention records for inspections or audits.

Core Elements of a Professional Legal Disclosure Agreement

A thorough agreement is structured to identify parties, specify the subject matter, list disclosures, state representations and warranties, allocate remedies, and include execution details.

Parties

Full legal names and capacities of disclosing and receiving parties to avoid ambiguity about who has rights or obligations.

Scope

Clear description of the subject matter, time period, and what types of facts or documents are covered by the disclosure.

Disclosures

Itemized list of known facts, exceptions, attachments, and references to supporting documents or schedules.

Representations

Statements about the completeness of disclosures, whether made under oath or subject to materiality qualifiers.

Remedies

Consequences for misstatement or omission, including indemnities, termination rights, or monetary remedies.

Execution Details

Signature blocks, effective date, governing law, and any notary or witness requirements.

Required Information and Key Data Fields

Effective Date: MM/DD/YYYY
Party Names: Legal entity names
Contact Details: Address and email
Disclosure Items: Enumerated list
Governing Law: Selected state
Signature Blocks: Names, titles

Step-by-Step: Completing a Legal Disclosure Agreement

Follow these sequential actions to prepare, review, and execute a compliant disclosure agreement.

  • 01
    Gather facts: Collect documents and known material information.
  • 02
    Draft disclosures: Itemize and attach supporting exhibits.
  • 03
    Legal review: Have counsel verify scope and remedies.
  • 04
    Execute: Sign, date, and notarize if required.

How to Configure an Online Signing Workflow

Set up clear routing, fields, and authentication to preserve intent and attribution in electronic execution.

Field Configuration
Signature Block Set required, lock after signing
Initials Add per-page initial fields
Attachment Allow supporting exhibits upload
Authentication Choose email, SMS code, or KBA

Technical Considerations for eSigning and eSubmission

Choose authentication and retention settings that meet ESIGN and any industry-specific rules; preserve audit logs and signed PDFs for reproducibility.

  • File Formats: PDF, DOCX supported
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Compliance: AES-256 at rest

Where to Send or File the Completed Agreement

Deliver executed copies to all parties and retain a signed original; file with regulators or escrow agents only when required.

  • To the Parties: Send final PDF copies to all signers
  • Company Records: Store in central contract repository
  • Regulators: Submit only when mandated
  • Escrow Agent: Deposit exhibits if escrowed

Typical Timelines and Processing Expectations

Timelines depend on complexity and required authentication; plan for review and signature time when negotiating closing schedules.

Drafting Time:

1–7 business days depending on complexity

Legal Review:

Allow 3–10 business days

Counterparty Response:

Expect 3–14 calendar days

Notary/RON Session:

Schedule 1–5 business days

Final Archival:

Store immediately after signature

Common Consequences of Incomplete or Incorrect Disclosures

Contract Voidance: Material omissions risk rescission
Indemnity Claims: Possible costly litigation
Regulatory Liability: Fines or enforcement actions
Reputational Harm: Loss of trust
Delayed Closing: Transaction timelines extend
Evidence Loss: Missing audit trail weakens claims

Real-World Examples of Disclosure Agreements in Use

These concise examples show how disclosure agreements help document material facts in practical settings and the outcomes they support.

Martin Properties

When closing remote leases, the team needed compliant online signatures to document disclosures and tenant acknowledgements.

  • They used mobile signing to capture tenant initials and full signatures.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Fertility Centers of Illinois

Clinical consent and disclosure records required strict chain-of-custody and privacy controls for patient data.

  • The center consolidated signed disclosures into its records management system.
  • "The airSlate SignNow team has been exceptional, responsive, the API has been great, and we're extremely happy that we chose airSlate SignNow as a company."

eSignature Providers: Pricing and Compliance Features

Comparison focused on starting price, trial availability, bulk-sending capability, audit trail presence, HIPAA support, and envelope limits across popular vendors.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card No free trial No free trial Yes, limited trial Yes, limited trial
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes (BAA available) Yes (BAA available) No No
Envelope Cap No cap 100 envelopes/user/year Depends on plan Depends on plan Depends on plan

Frequently Asked Questions About Legal Disclosure Agreements

Answers to common questions about enforceability, e-signing, notarization, revisions, and recordkeeping for disclosure agreements.


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