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.

Keep sending in your questions!!

How it works: You send me your questions to Sarah@BusinessLawPDX.com 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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