Who should sign a Confidentiality Agreement?

Elliott Stapleton Confidentiality and Nondisclosure Agreement

For a business owner, it may be unclear when a confidentiality or non-disclosure agreement is necessary. The parties who should sign a confidentiality agreement include:

  1. employees,
  2. independent contractors,
  3. consultants,
  4. vendors,
  5. suppliers, and
  6. any person who will receive material non-public information.

Material non-public information can include your pricing structure, client lists, customer lists, formulas, or other data which if placed in the hands of a competitor could damage your business model.

In business, there is always a risk of disclosure, even if a party signs the agreement. The nondisclosure agreement will provide damages in the event of an unauthorized disclosure, which would allow recovery that would not otherwise be available without the contract.

 

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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.