Understanding nondisclosure agreements
The information that businesses share is crucial to their success; therefore, it is vital that they control the way that information is shared, and to whom. This is most often done through nondisclosure agreements.
A nondisclosure agreement is a type of contract that identifies the ways that certain information is permitted to be shared, or more accurately, the ways in which it cannot be shared. It is something that is often signed by a person before he or she is employed by a company, or before he or she starts working closely with a company.
What happens if a person breaks the nondisclosure agreement?
If a person breaks the nondisclosure agreement and there is clear proof of this, he or she can be liable to be sued. However, it has become common for startup companies and fast-paced tech companies to improperly use nondisclosure agreements.
What should a nondisclosure agreement include?
An ideal nondisclosure agreement should specify the exact information that should be kept secret, and distinguish this from the type of information that is permissible to be shared. There should also be a specific time period for which the nondisclosure agreement holds legally binding for. This makes it much easier to make a successful claim against a shared secret.
The nondisclosure agreement should also outline some responsibilities and duties that the receiving parties have toward the information that they are about to receive. This promotes the act of keeping information safe and private.
If you are having a business conflict relating to nondisclosure agreements, it is important that you conduct thorough research and take action where appropriate.
Source: FindLaw, “A Nondisclosure Agreement,” accessed Jan. 12, 2018 Posted on Business Litigation