In short
A residuals clause lets the other side use information its people keep in their unaided memory after seeing your confidential information.
What it means for you
It can weaken an NDA. Even after they return or delete your documents, the other side may be free to use ideas, know-how and techniques its people remember.
Where to find it
Usually inside the confidentiality clause of an NDA or a services agreement, often near the end.
What to look for
- Whether it covers only what people remember without notes
- Whether it leaves out your patents, copyright and specific figures or plans
- Whether it applies to both sides
How Gathersense helps
Your playbook can say how you treat residuals, and the Playbook check flags the clause on every NDA, so you can decide whether to accept it, narrow it or strike it.
