In instances where you’re exposed to trade secrets or sensitive information, you may be required to sign a non-disclosure agreement before learning the information. Similarly, if you’re an employer or entity ready to share confidential knowledge, you’ll want to consider ensuring that the other party signs this document. Whether you’re preparing an agreement or unsure what the conditions of signing are, a Providence, Rhode Island employment agreement lawyer can help you navigate terms and conditions.
Understanding the Basics of a Non-Disclosure Agreement
Generally, many think that non-disclosure agreements, also referred to as NDAs, are only for those who interact with the rich and famous. However, this is far from the truth. Many entities, companies, and individuals utilize these documents to protect themselves and their clients.
Signing an NDA ensures that private information is protected. These agreements will outline the terms and conditions surrounding the disclosure of confidential knowledge. Generally, it bars the individual from discussing or sharing any information they’ve learned while employed for a company or if they use the details for their own personal gain.
The NDA will also only last for a predetermined period before expiring. However, in some instances, the NDAs timeframe can be indefinite. Be sure to read into how long the length of the non-disclosure period is before signing.
When Are They Used?
- NDAs are used to protect companies and individuals from their sensitive information leaking. Common reasons someone may require an NDA to be signed include the following:
- Sharing sensitive information
- Beginning a business relationship
- Hiring a new employee that will obtain access to sensitive information
- Sharing information about a business with a reporter
These documents will outline the guidelines for reporting on the company, including what information is forbidden from being shared with outsiders.
What Happens if You Violate an NDA?
In most instances, the NDA will outline the penalties for breaching confidentiality, whether intentional or not. Should you break an NDA, you’re susceptible to lawsuits, as this is a legally binding contract. You can be held responsible for any lost wages or money your employer suffered due to your breach of contract.
How Do You Set up an NDA?
If you’re looking to set up an NDA for your business, you’ll need to ensure the language used in the document is accurate and exact. If the terms of confidentiality are too broad, you risk the NDA being ruled unenforceable. However, if you aren’t specific enough with your language, you may find that employees or other entities find loopholes in the wording.
When you need assistance writing, executing, or understanding the terms of a non-disclosure agreement, ensuring you enlist the assistance of a knowledgeable lawyer is crucial. You can contact our group today to ensure you make the most informed choice.