Non-disclosure agreements (NDAs) are employment contracts between employer and employee that serve as a necessary safeguard to protect business trade secrets. Such trade secrets include proprietary information of the disclosing party and any research or knowledge that is not yet patented or copyrighted. There are two types of non-disclosure agreements: unilateral and mutual. The one-party unilateral NDA is the most common. Unilateral NDAs specify employee confidentiality during and after employment and usually includes an expiration date.
Every NDA is distinctive to the business’ needs. Astutely drafted NDAs are more likely to be upheld by the courts. NDAs with overreaching provisions may be ineffective and subject to litigation. So, it is essential that an NDA is precisely customized to the employer’s needs.
NDAs Help Businesses Thrive and Stay Out of Jeopardy
The benefits of an NDA diminish the real risk of business ruin. Succinct NDAs stipulate what is confidential. NDAs can encompass a myriad of complex agreements and clauses, but the standard unilateral NDA incorporates:
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