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:
- independent contractors,
- suppliers, and
- 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.
Schedule a free consultation.
Just a conversation - no cost.
Share this Post