Information to include on a nondisclosure agreement should clearly indicate the information that is confidential and for how long, FindLaw advises. Additionally, a nondisclosure agreement should outline what the receiver can do with the confidential information.Continue Reading
A nondisclosure agreement is a legal contract where a receiver of confidential information makes a promise to not disclose the information without authorization, Nolo says. This agreement protects business ideas or trade secrets in when exchange is need in order to explore the information.
The nondisclosure agreement should have language that ensures all steps are taken to protect the secrecy of the information, because once it's disclosed to the public, the information is no longer considered proprietary, FindLaw notes. The agreement should also contain a forum for dispute resolution should any dispute arise as to the disclosure of the information.
A nondisclosure agreement can be unilateral or mutual, as they are frequently used as part of employee agreements for some high-tech companies. If the information in a nondisclosure agreement is breached, a court order can be obtained to prevent further disclosure of the information, FindLaw advises. Anyone who is found to break the nondisclosure agreement can be sued for monetary damages for any monetary losses associated with the breach of information.Learn more about Law