A confidentiality agreement can protect any type of information that is not known to everyone. However, confidentiality agreements may also contain clauses protecting the person receiving the information, so that if they have lawfully obtained the information through other sources, they would not be required to keep the information secret. [5] In other words, the confidentiality agreement generally requires that the party receiving information remain confidential when that information has been provided directly by the disclosed party. However, sometimes it is easier to get a receiving party to sign a simple agreement, which is shorter, less complex, and does not contain security rules to protect the recipient. [Citation required] Confidential information is a basic business requirement. This information is essential to protect the company`s vitality, competitive advantage, industry leadership and, ultimately, market share. Sometimes a company has to disclose confidential information to others to promote its business interests. Confidentiality agreements can allow companies to disclose confidential information without taking the risk of losing possession of that information. However, confidentiality agreements are only effective to the extent that they are enforceable. A valid confidentiality agreement may result in financial damages or injury against the injuring party. An invalid agreement may cause the information to be lost to its confidential status.

While companies recognize the need to enter into confidentiality agreements, they may not consider the validity of additional conditions or measures necessary for the application of an agreement. The validity of the agreement depends on the language of its specific conditions, so it is important to be aware of potential problems that may arise during implementation. This article examines the common problems that can occur when applying a confidentiality agreement. Protection of information in the event of a merger. Confidentiality agreements can protect information about the business and the sales contract until a merger or acquisition is concluded. Similarly, confidentiality agreements are useful in protecting the commercial interests of joint ventures. Most often, a party offers the same level of confidentiality as it seeks. In this way, there can never be a legitimate objection to the provision of the information. Of course, it is quite different from saying that both parties will actually disclose the same information or the same amount. A thorough understanding of confidentiality agreements and their legalities will help you, whether you are passing on confidentiality agreements to others or being encouraged to comply with them. Our labor lawyers at Boston Rodman Employment Law have represented countless clients under confidentiality agreements.

Our work includes careful consideration of the provisions prior to the execution and negotiation of favorable terms on your behalf. If you are faced with an employer`s attempt to impose a confidentiality agreement, we will aggressively defend your interests in court. In California (and other U.S. states), there are special circumstances regarding confidentiality agreements and non-compete rules. California courts and legislators have signaled that they value an employee`s mobility and entrepreneurship in general more than protectionist doctrine. [7] [8] Otherwise, you will make disclosures at your own risk, as the receiving party may argue that it did not consent to the confidentiality of the disclosed information prior to the signing of the NDA. Any agreement between an employer and a Massachusetts employee that requires the worker not to disclose certain information they learned in the workplace is a confidentiality agreement. Because they impose staff confidentiality, these contracts are generally referred to as confidentiality agreements….