Why Sign A Confidentiality Agreement

Non-disclosure agreements are an important legal framework used to protect sensitive and confidential information from disclosure by the recipient of that information. Companies and startups use these documents to make sure their good ideas aren`t stolen by people they negotiate with. Anyone who violates a confidentiality agreement will be liable to prosecution and penalties equal to the value of the loss of profits. Criminal charges can even be laid. Non-disclosure agreements may be unilateral, with only the recipient of the information to remain silent, or mutually, if both parties agree not to disclose each other`s sensitive information. A non-disclosure agreement can protect any type of information that is not generally known. [Citation required] The reason you should never rely on an oral confidentiality agreement is simply that it is extremely difficult, if not impossible, to prove the existence of an oral agreement and/or actions indicating the creation of such an agreement. This is due to the „he said she said she said“ problem. Essentially, a case based on an oral agreement is decided on the basis of who is believed. Don`t put yourself in this situation if you can avoid it at all. You should always try to get the agreement in writing (whenever possible), although you need to water it down a bit to get a signature. Be careful with the language of the agreement that does not refer to information of which you already have personal or public knowledge. Otherwise, you`ll handcuff yourself and open yourself up to greater responsibility – although an NDA with too broad and vague language probably won`t stand up to court.

Keywords:confidential information, confidentiality, confidentiality agreements, confidentiality agreements, contract, 101 contracts, NDA, non-disclosure agreements, non-disclosure obligation, trade secret, trade secret, trade secrets If a company has had problems in the past with employees sharing sensitive information, probably all employees will have to sign an NDA to avoid such problems in the future. Even if someone is very trustworthy, a company may require their signature on an NDA because it`s not a personal issue. .