Further information: Overview, definition, and example
What is further information?
Further information refers to additional details, disclosures, or clarifications that a party may be required to provide under a contract. This obligation ensures transparency, compliance, and proper decision-making by allowing one party to request relevant information from another.
For example, in a due diligence process, an investor may request further information about a company’s financials before finalizing an investment. Similarly, in a business contract, a supplier may need to provide further information about product specifications or compliance certifications upon request.
Why is further information important?
Ensuring access to further information helps prevent misunderstandings, confirm compliance, and facilitate informed decision-making. Without a clear provision for requesting additional details, parties may struggle to verify contract performance or address concerns.
For businesses, a further information clause helps clarify reporting obligations, improve transparency, and provide a structured process for requesting and delivering additional details when needed. It also reduces legal risks by ensuring that all relevant facts are available before key decisions are made.
Understanding further information through an example
Imagine a merger and acquisition agreement where a buyer is conducting due diligence. The contract includes a clause allowing the buyer to request further information about outstanding debts, supplier agreements, and regulatory compliance. This ensures the buyer can assess all risks before proceeding.
In another scenario, a software licensing agreement requires the vendor to provide further information about security protocols and system updates upon the client’s request. This helps the client ensure that the software meets its internal security requirements.
Example of a further information clause
Here's an example of how a further information clause may look like in an agreement:
“Upon reasonable request, each Party shall provide further information necessary for the proper execution and enforcement of this Agreement. Such information shall be provided in a timely manner and in compliance with applicable confidentiality and data protection laws.”
Conclusion
A further information clause ensures transparency, accessibility, and accountability in contractual relationships. It allows parties to request and receive additional details that are critical for decision-making, compliance, or performance evaluation.
By including a further information clause in agreements, businesses can reduce uncertainty, clarify obligations, and ensure that relevant details are available when needed.
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.