Answering your questions on Non-Disclosure Agreements

11 Aug 2011 by Sarah Adams, Comments Off on Answering your questions on Non-Disclosure Agreements

“When discussing my business venture with professionals in the field, are there general guidelines as to when I should use a Non Disclosure Agreement or Non Compete Agreement to protect my business concept?”

A Non-Disclosure Agreement (NDA) is an agreement where the parties agree to maintain the information they obtain as a result of the relationship confidential from all others. It may even include a provision for monetary damages if that agreement is breached. NDA’s are commonly used in many relationships such as employment, when talking with potential purchasers of your business, or even investors.

A Non-Compete Agreement (NCA) is an agreement most commonly found in employment agreements with high-level employees. Generally, the employer wants to ensure that the employee will not open shop and compete against the employer using information that s/he obtained while working with the employer.

Depending on the nature of the discussions with other professionals and how detailed you will get, an NDA is a great idea. However, before you get so far as needing an NDA, be sure to properly vet the other professional to ensure they are not likely to breach it.

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How it works: You send me your questions to and I will answer them in the order received. I will then turn your question into a blog post (keeping your identity generic, of course) and respond by email to let you know that your question has been answered.

Disclaimer: Keep in mind that any questions I answer are intended as general information to raise some issues for you to discuss with your lawyer. Therefore, such communication does not create an attorney-client relationship. It is always best to consult an attorney if you want a specific question answered. End disclaimer.

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