When do you need a nondisclosure clause in a contract?

On Behalf of | Jan 20, 2023 | Business Law |

As you build your business, you may find that there are certain aspects of it that you want to keep a secret. Whether these are client contact lists or trade secrets, it’s crucial that you do what you can to ensure employees and others who have access to the information don’t speak out. 

One option that you have to do this is to set up nondisclosure clauses in the contracts you have with these individuals. In fact, this is a good idea to include in most contracts so the terms of the contract can’t be relayed to the public. 

What should you include in a nondisclosure agreement?

There are some points that you should always include in a nondisclosure agreement. These include a description of what information is included in the provision, as well as anything that’s specifically excluded from it. There should also be information about the period during which the agreement is valid. 

The more detailed the agreement, the more protection it may provide for your business. Be sure you include information about what will happen if the other party doesn’t keep the noted information confidential during the term of the contract. 

Making sure that you have the tools you need to protect your business. One of the most important things you need to do is ensure you have contracts that clearly outline things like what can and can’t be shared about the business. Because contracts are often complex, working with someone familiar with them can offer greater protection than trying to get it done on your own.