Confidentiality Agreements

Confidentiality Agreements serve many valid purposes in business. However, they can also be abused. Having a knowledgeable lawyer with you through the process can help protect you and your interests whether you are requesting a Confidentiality Agreement or are being asked to sign one.

Confidentiality Agreements typically stop one or more of the parties to the Agreement from discussing, sharing or disclosing certain information specified by the Agreement. Each Agreement is different but typically has some type of penalty attached for violating of the Agreement.

These consequences can include financial penalties, to termination of employment, or forfeiture of a business or investment opportunity. These consequences need to be weighed carefully before the Agreement is signed to make sure you do not find yourself in an untenable situation later on.

Confidentiality Agreements need to be bargained for, meaning actually discussed, not just accepted as part of a form. Confidentiality Agreements must also be reasonably limited. Typical limitations include things like the type of material to be held confidential, or restrictions on the required amount of time or certain subject matters.

When a Confidentiality Agreement is properly drafted and reviewed, it can allow you or your business to explore new business ideas, markets, and products. This opens up critical avenues to explore business partnerships, review confidential documents for purchase or sale, or investigate a high-level hire.

If you want to contact Owens & Perkins regarding reviewing or drafting a Confidentiality Agreement, click here.