How Does a Confidentiality Agreement Work?

Elliott Stapleton Confidentiality and Nondisclosure Agreement

In this legal contract, the parties agree not to disclose information covered by the agreement. This contract creates a relationship between the parties to protect any type of confidential and propriety information or trade secrets of a business.

Confidentiality agreements are commonly signed when two companies, individuals, or other entities are considering doing business together and need to understand the processes used for the purpose of evaluating the potential business relationship. Confidentiality agreements can be “mutual”, meaning that both parties are restricted in their use of the materials provided, or they can restrict the use of material used by a single party.

It is also possible for an employee to sign a confidentiality agreement with an employer. In fact, some employment agreements will include a clause restricting employees’ use and dissemination of company-owned “confidential information.”

 

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About the Author

Elliott Stapleton

Elliott is a partner in the firm of Cornetet, Meyer, Rush and Stapleton, LPA. His business clients range from small single member companies to large privately held businesses.

Elliott’s legal services include advice on Business Formation and Transactions, Real Estate Transactions, Trademark Law, Copyright Law, Estate Planning, and Probate Administration.