Insight on Non-Disclosure Agreements
A basic description of non-disclosure agreements (NDAs) is that these are two-sided contracts that allow parties to share information without worrying that said information will be exposed to the general public.
Some common business deals require non-disclosure agreements (NDAs) to create a confidential relationship between parties. Employers might also use NDAs with employees to keep them from disclosing sensitive information to competitors.
Usage Of Non-Disclosure Agreements.
As you can see, the above can make them exceedingly common in the business world for general legal security. For example, expansion of non-disclosure agreements (NDAs) can include new product development, customer lists, future business plans, pricing information, or pending litigation.
While NDAs can be detailed and unique according to what they are attempting to protect from the public, most contain similarities regarding basic structure. The things most will include are:
- The parties’ names.
- The subject matter of the agreement.
- Any restrictions on the use of information.
All of these are common terms you should include in a non-disclosure agreement.
But, Can an NDA Be Disregarded In Court?
Courts look at several factors when determining whether an NDA is enforceable. The NDA must not violate public policy or be related to illegal activities like gambling or prostitution. If there is evidence that one of the parties was coerced into signing the contract or that there was a mistake involved that prevented one party from understanding the terms of the contract, then it will likely not be found to be legal and binding.
Non-disclosure agreements (NDAs) are generally enforceable if they are in the best interest of both parties. If you’re writing an NDA, make sure it’s airtight. You’ll have to live with the consequences of what’s written there.
On The Occasion You Violated an NDA
When you sign an NDA, you agree to hold certain information in confidence. If you disclose that information, you’ve breached your contract — thus violating the terms of the NDA. Upon this occasion, the other parties to the agreement will be able to take legal action against you. You may have to pay financial damages and related costs if a lawsuit is filed against you. These are some common claims that can be made against people who violate NDAs: breach of contract, theft of trade secrets, and unfair competition.
Don’t breach your non-disclosure agreement. The consequences could cost you hundreds of thousands of dollars, along with unwanted notoriety.
Non-Disclosure Agreements are contracts that help protect your assets and money. If you have been asked to sign an NDA or have questions about an existing agreement, contact an experienced attorney to discuss your options. We are a group of attorneys with years of experience handling various agreements. We can help you determine whether or not signing an agreement is the best course of action for protecting your assets and money. We at Dowd Law would be more than happy to represent your interests, and ensure your security and peace of mind for all the business ventures to follow.