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PLAYBOOK TEMPLATES

Sales Agreement (Goods Supply Contract)

A Sales Agreement establishes the legal framework for the sale and supply of goods between parties, setting terms for pricing, delivery, and risk transfer. This playbook examines key negotiation points including warranties, payment terms, and remedies for breach.

Confidentiality and Data Protection

Why This Matters: Breach of confidentiality or data privacy obligations can result in regulatory penalties and reputational harm.

Negotiation strategy

If you're the Company:

Ensure that confidentiality clauses are comprehensive and include provisions for data protection. Insist on regular audits and compliance checks to verify adherence to data privacy laws.

If you're the Sales Agent:

Negotiate for reasonable limitations on liability related to data breaches. Ensure that the obligations are proportionate and achievable within the operational capabilities.

Essential elements

1

Confidentiality Obligations

Non-disclosure and limited use.
2

Data Protection Compliance

Adherence to privacy laws.
3

Data Breach Notification

Timely breach reporting.

Action framework

ACCEPT

Propose edits if the clause lacks specific data protection measures or if the confidentiality scope is too broad.

EDIT

Reject if the clause fails to provide any confidentiality or data protection obligations.

ADD

Add clauses if jurisdiction-specific data protection laws are not addressed.

PRO TIP

Always ensure that confidentiality and data protection clauses are aligned with the latest legal requirements and industry standards.

Example clauses

FAVORABLE

Robust Confidentiality Clause

"Each party agrees to keep confidential all information disclosed to it by the other party, whether orally or in writing, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Each party agrees not to use such confidential information for any purpose other than the performance of its obligations under this Agreement and shall not disclose such information to any third party without the prior written consent of the disclosing party, except as required by law or as necessary to comply with a court order or governmental request."
NEUTRAL

Standard Data Protection Clause

"Each party shall comply with all applicable data protection and privacy laws and regulations in relation to the processing of personal data under this Agreement."
UNFAVORABLE

Weak Data Breach Clause

"In the event of a data breach, the affected party shall notify the other party at its earliest convenience."

Fallbacks

High-Sensitivity Data

For agreements involving highly sensitive data, additional encryption and access control measures should be specified to enhance data security.

Cross-Border Data Transfers

When data is transferred across borders, ensure compliance with international data transfer regulations such as GDPR's Standard Contractual Clauses.

Third-Party Vendors

Include specific obligations for third-party vendors to ensure they adhere to the same confidentiality and data protection standards.
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