Carl Glendon

How To Make A Confidentiality Agreement Legally Binding?

A Confidentiality and Non-Disclosure Agreement, also referred to as Secrecy Agreement, is the name given to a legal agreement signed between two parties. It specifies the secret information or material knowledge that parties want to share for specific purpose, but want to restrict access to a 3rd party. This type of a contract between two or multiple parties denotes a bond existing between the parties. Find out how to make this type of agreement legally binding.

It should be Unilateral / Mutually Agreed

A Confidential agreement may be mutually agreed or it can be unilateral. In unilateral confidentiality agreements, the confidential information is disclosed by one party to another. In a mutual confidentiality agreement, every party shares the confidential details to one another.

It should be regulated by law

The laws of the land should govern each legal confidentiality agreement.

It should include length of obligation and effective date / time period

The contract must mention a proper time period, or how long the provisions mentioned in the agreement are likely to be valid for. Parties will be freed from the provision following the contract's termination or until the time the confidential details are not qualified any more as a trade secret.

It should mention the promise of parties

For a NDA form template to be legally binding, it should protect all the sensitive details from being shared with others. One or multiple partners mentioned in the contract must make a promise not to share any information that they get from other parties. During the course of business, there can be sensitive information - which has to be protected at all times. To learn more about drafting a non disclosure agreement in Colorado online, visit this website.

It must mention all the damages

The agreement will be enforceable when there is a mention of the right to sue damages for any breach in the terms of the contract. With a confidentiality agreement template, the loss of useful patent rights can be prevented. Damages can be claimed by the injured party in case a party that is bound by the business confidentiality agreement discloses sensitive details to another company or individual.

It should mention the Jurisdiction

The parties should seek the exclusive jurisdiction of a country or court.

Author Resource:-

Carl writes often about legal drafting like rental & commercial lease agreements, non-disclosure agreement and bill of sale to help the people. You can find his thoughts at free legal contracts blog. Please visit this site to get a sample non disclosure agreement in Maryland.