|Permission to disclose confidential information may take the form of a letter, exchange of letters or written undertaking or it may take the form of a separate formal agreement (as is the case in this Contract). Whichever is adopted, the document must be clear and precise as to the subject matter to be disclosed, to whom disclosure is to be made and the purpose for which the disclosee is to use such information and the circumstances (if appropriate) requiring its redelivery.
As the name implies, this agreement formally permits the disclosure of information by a party bound by non-disclosure provisions whether such provisions exist in an agreement between the parties which incorporates a general term relating to confidential information whether such provisions are the subject of a separate agreement relating specifically to the subject matter wishing to be disclosed.
It may be used merely to formalize the giving of permission to disclose or it may be required to exhibit to, e.g. a developer or an escrow agent to permit the release of proprietary information for a specific purpose.
Whatever the reason, it dispels subsequent doubt and ambiguity surrounding any disclosure and minimizes any risk of litigation.