Contract Glossary
Disclosure
Definition
The act of sharing information that the other party has a right to know — whether it's a conflict of interest, a known defect, or financial details. Some disclosures are legally required; others are contractually required. Hiding material information can be fraud.
In Practice
Selling a business? You'll need to disclose financial records, pending lawsuits, and known liabilities. Signing an NDA? You'll disclose what information is confidential. Entering a partnership? You should disclose any conflicts of interest. The rule is simple: if the other party would make a different decision knowing this information, you should probably disclose it.
Common in these contract types
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Frequently asked questions about disclosure
It depends on the type of contract and jurisdiction. Real estate sellers must disclose known defects in most states. Business sellers must disclose material liabilities. Employers must disclose certain terms of employment. Securities law requires extensive financial disclosure. When in doubt, err on the side of disclosing — hiding material facts can turn a simple breach into a fraud claim.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.