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In the employment context, a non-disclosure agreement (NDA) or a confidentiality agreement is a contract between an employer and employee where the employee agrees to not disclose or use confidential information belonging to the company.
Typical exceptions to the definition of confidential information include (i) information publicly known or in the public domain prior to the time of disclosure, (ii) information publicly known and made generally available after disclosure through no action or inaction of the recipient, (ii) information already in the
The key elements of confidentiality agreements are: Identification of the parties. Definition of what is defined to be confidential. The scope of the confidentiality obligation by the receiving party.
Confidential Information will not include information that the Receiving Party can show: (a) was known to it at the time of disclosure; or (b) was publicly available or known in the industry at the time of disclosure; or (c) subsequent to disclosure, became publicly available or generally known in the industry through
The agreement should identify the purpose to which the recipient can put the confidential information. All other uses of the confidential information should be prohibited. Sometimes a confidentiality agreement states that no rights are licensed by the confidentiality agreement. This is stating the obvious.
Generally, confidentiality agreements are enforceable when they meet the general requirements of a contract.
The information not protected by a confidentiality agreement includes: Information the recipient knew prior to signing the agreement. Information the recipient learns from alternative sources or information that is public knowledge.
Confidentiality agreements, sometimes called secrecy or nondisclosure agreements, are contracts entered into by two or more parties in which some or all of the parties agree that certain types of information that pass from one party to the other or that are created by one of the parties will remain confidential.
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