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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11331
Experience:  Experienced in business formation and licensing issues
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If a non-disclosure agreement between company X and company

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If a non-disclosure agreement between company X and company Y, defines company X as "Company X and it's subsidiaries"; what purpose would a contractual clause written as such have?

"X and its other subsidiaries, are intended third party beneficiaries of Company's obligations, covenants and restrictions hereunder."
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A company may own other companies. For example, corporation X may own corporations y and z. When a contract makes applicability to the named corporation or subsidiaries it is important to ascertain who are the subsidiaries. By making a corporation and subsidiaries named beneficiaries those beneficiaries may file suit, when needed, based on the contract.

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Customer: replied 3 years ago.
Hi JBax,

Thanks for the answer. Are you a registered attorney? I don't know much about credentials on justanswer so I wanted to clarify.

In regards XXXXX XXXXX answer, if the first paragraph defines the party to include the subsidiaries, why does the third party beneficiary clause reiterate this? And does it leave the other parties confidential information open for misuse?

Thanks in advance for following up.
The site provides information about professionals working on this site. It is important to note that only information is provided. Legal opinions nor advice may be provided here. To obtain that, you must talk to an attorney licensed in your state.

Back to your question, there are a variety of reasons for the two clauses you pointed out. Subsidiaries are distinct legal entities so if the agreement is to include those it must state so explicitly. The explicit statement regarding third party beneficiaries is a reiteration to make it clear the subsidiaries may pursue a claim, if needed, under the agreement. I do not see any confidentiality issue in regards XXXXX XXXXX subsidiary, but I do not know the full nature of your concerns here.

Please follow-up with me as needed. This is intended to be an ongoing dialogue. I rely on positive service ratings, so please do not forget to leave a positive service rating. I would greatly appreciate a positive service rating and optional bonus.

Thank you
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