Non-disclosure agreement, also referred as confidential agreement, is a legal contract of at least two individuals or parties which gives restriction to the recipient to access confidential matters and dealings. This agreement provides protection from trade secrets and confidential materials which must be carefully guided by entrepreneurs or company owners since these things might be crucial for their success.
This deal provides a benefit from employers since proprietary information and confidential reports are restricted from certain individuals in order to secure important and top-secret materials. The Non-disclosure agreement is only used in non-public information which may not affect the interest of the general public.
confidentialIn some cases, an employee would be required to sign this document even before he starts working in the company. This contract gives the employer a legal restriction for his subordinates and employees to have an access to the company’s confidential reports and information.
For those individuals who are required to sign this contract, they must give consideration to the details in order to avoid encountering some legality since it is very important to know what are the requirements and restrictions which must be followed with leniency. Here are the most basic details they can see in non-disclosure agreement:
The individuals/parties involve in the contract.
The specific definition of what is confidential which may include information such as company’s plans, unique ideas, financial reports, patented materials which have not yet been made public, business schema, secret ingredient of a certain product, customers and vendors’ list, etc.
If the receiver has some prior knowledge regarding the confidential materials or he has familiarity with these which he got from other sources, the non-disclosure agreement is considered as invalid.
The covered period of time (expiration) where a certain material is considered restricted.
The covered years which restrict the person to have an access to the confidential materials.
The outcome of the contract will be considered void as soon as the confidential material has made available to the general public or when summoned by a subpoena.
The only allowable materials which can be restricted. Anything that is a public concern or required by the law to be disclosed is not covered by this kind of agreement.
The prerequisite which restricts transferring of confidential data and information.
The non-disclosure agreement requires the person to do certain obligations which include using of information and materials only for its required purpose; disclosing it only to people who might be of help to further utilize the materials and the information; to keep information highly-secured; to keep the information and other crucial materials secure by observing other people if they are discreet or not.
For some companies, especially those operating in the IT industry, the non-disclosure agreement itself may not be even disclosed.
In case where an individual has illegally used the confidential secrets without authorization from its owner, he can be sued for damages and the court can prohibit him to make further disclosures.