The term “NDA” is frequently heard in the news, but what does it actually mean? How do they affect us at the business level or the personal level?
Non-disclosure agreements (NDA’s) are legal contract agreements that can be difficult to understand at first. Dan Burke Law provides readers with an overview of what an NDA is, how it works, and what types of information it protects against in the article below.
In short, an NDA is a legal document that acts as a confidentiality agreement. It binds the signer and prohibits them from disclosing any information contained in the contract to any uninvited party.
An NDA is a common tool used in the business world for protecting trade secrets, confidential client information, and other valuable or sensitive data. Individuals in high positions of authority, such as politicians or celebrities, can also benefit from these contracts to avoid bad publicity.
Sharing information despite an NDA is considered a breach of contract and could lead to a lawsuit against the party responsible for the breach of the contract.
What Information Does an NDA cover?
As mentioned, an NDA is utilized on both at the macro and micro level. At the macro level, such as for businesses and corporations, NDA’s protect against the following:
Inventions (or plans for inventions)
Independent contractors, investors, or buyers
Ideas for marketing (blogs, social media posts, websites, etc.)
Copyrighted programs (both software and hardware)
Chemical combinations (recipes or formulas)
On the micro level, such as for an individual (divorcees), NDA’s provide protection from previous relationships. For instance, an NDA would prevent a former partner from disclosing any information about you to the public.
How Long Does an NDA last?
The duration of an NDA is determined by the terms of the agreement. Certain NDA’s are indefinite in duration, while others last between one and ten years. Each NDA will include a termination clause stating when the agreement will terminate.
Do Non-Disclosure Agreements Become Void?
If the enforcement of an NDA is found to be contrary to public policy, a judge may declare the agreement null and void. A contract relating to a crime, for example, is an instance where an NDA wouldn’t be enforced.
An NDA would also lose its authority if it has vague or ambiguous terms or clauses. The language must be explicit and clear in the signer’s expectations.
Also, people who sign NDA’s can talk in certain situations. A few examples include when they are subpoenaed or reporting to an enforcement agency, like the federal Equal Employment Opportunity Commission.
Should You Sign an NDA?
Consult a local attorney for help with any issues you may be having with a confidentiality agreement. NDA’s can contain intentionally ambiguous language sometimes, making it critical to consult with an NDA-experienced lawyer before signing one. They’ll make sure you get the right advice and help you balance your options when it comes to protecting your money, privacy, and possessions.
NDA: Do You Have Any Doubts? Contact Dan Burke Law Firm
Are you thinking about signing or making a non-disclosure agreement (NDA) to protect your work or personal relationships? Dan Burke Law can help you. During the last 19 years, Dan Burke has worked hard to help small businesses and real estate investors in San Antonio reach their goals. If you or your business need to maintain privacy, contact Dan Burke Law today.