Agreement to provide information: Overview, definition, and example
What is an agreement to provide information?
An agreement to provide information is a contractual obligation requiring one party to supply specific data, documents, or disclosures to another party within a defined timeframe. This provision ensures transparency, compliance, and informed decision-making in business transactions, regulatory matters, and contractual relationships.
For example, in a loan agreement, a borrower may be required to regularly provide financial statements to the lender to confirm their financial health and compliance with loan terms.
Why is an agreement to provide information important?
This clause is important because it ensures that relevant and accurate information is shared between parties, preventing disputes and facilitating compliance with contractual and regulatory requirements. It helps businesses and individuals make informed decisions by requiring timely access to necessary data.
For businesses, including an agreement to provide information clause helps ensure operational transparency, regulatory compliance, and accountability in agreements involving financial reporting, due diligence, and ongoing contractual obligations.
Understanding an agreement to provide information through an example
A real estate developer enters into a joint venture with an investment firm. The agreement requires the developer to provide project progress reports, financial projections, and regulatory approvals at regular intervals to keep investors informed.
In another case, a supplier contract includes a clause requiring the supplier to provide updated pricing lists, inventory reports, and delivery schedules to the buyer on a monthly basis. This ensures that the buyer can properly manage stock levels and pricing strategies.
Example of an agreement to provide information clause
Here’s how an agreement to provide information clause might appear in a contract:
“Each Party agrees to provide all necessary information, documents, and disclosures required under this Agreement in a timely and accurate manner. Failure to provide such information within the agreed timeframe may result in a breach of this Agreement and subject the non-compliant Party to remedies specified herein.”
Conclusion
An agreement to provide information clause ensures that contractual parties share essential data and disclosures in a timely manner. This provision promotes transparency, prevents misunderstandings, and supports compliance with legal and business obligations. Including a well-drafted agreement to provide information clause in contracts helps protect all parties by defining expectations for data-sharing and accountability.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.