return of materials
Definition
Return of materials is a contract clause that requires one party to give back any documents, files, samples, or other physical or digital property belonging to the other party when a business relationship ends. This clause commonly appears in employment agreements, vendor contracts, and non-disclosure agreements to make sure sensitive business information does not walk out the door. The clause typically covers everything from printed manuals and product prototypes to digital files stored on personal devices.
Example
When you hire a freelance graphic designer and the project ends, a return of materials clause requires them to delete your logo files from their computer and mail back any printed brand guides you sent them. This protects your proprietary assets from being used or shared after the working relationship concludes.
Watch Out
Make sure your contract specifies a clear deadline for the return, because a vague obligation to return materials 'promptly' can be difficult to enforce if a dispute arises later.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.