When you have information that you need to keep private, a non-disclosure agreement (NDA) should be part of a comprehensive privacy solution. You can use them to protect trade secrets, business contacts, prototypes, and other information. NDAs are also helpful in lawsuits, allowing you to settle even frivolous claims without the expense of a legal defense while still protecting your professional—and personal—reputation.
The main downside to NDAs is that they must be carefully crafted. If they are overly broad, they can be unenforceable. Then, you have no protection and might also end up spending thousands of dollars on litigation only to arrive at that result. People will know about your secrets and that you had an unsuccessful NDA to try to hide that information.
Instead of risking that embarrassment, you need to work with Tampa non-disclosure agreement lawyer Mitchell Feldman. In addition to crafting airtight NDAs, the attorneys at the Feldman Legal Group is not afraid to go to court to protect your right to privacy.
Understanding Non-Disclosure Agreements
At their heart, NDAs are contracts. When used in a business setting, they obligate one party not to reveal the designated information in consideration of employment, another contract, or something else of value. When used to settle potential litigation, the consideration is whatever the settlement value is.
NDAs go by several different names, including confidentiality agreements and confidentiality disclosure agreements. They can protect proprietary information and sensitive information that could be detrimental to a business but does not fall under the proprietary umbrella.
The main risk is that an NDA will be overbroad, which can render it unenforceable. It should specifically detail what information is protected. It should also detail the length of time the information must be kept secret and what, if any, provisions render the NDA void. Keep in mind that illegal contracts are unenforceable, so an NDA that would prohibit people from speaking with law enforcement or regulatory agencies could be problematic, depending on the person’s role in an organization. Additionally, an NDA cannot cover information that is already publicly available. An attorney in Tampa could ensure an NDA is enforceable.
Enforcing Non-Disclosure Agreements
In addition to prohibiting the release of specific material, the NDA needs to outline the consequences of a breach of the contract. Usually, the consequences are monetary, resulting in a fine to the person in breach. In the employment context, consequences could include immediate termination, potential clawback provisions of pay and benefits, and more.
When a judge determines if an NDA is enforceable, they look at the burden it places on the party being asked not to disclose information. These contracts are often used in conjunction with non-compete agreements. However, an employer cannot contractually prevent an employee from seeking specialized employment indefinitely or without substantial compensation.
Any time a party breaches the terms of the NDA, the other party can bring an enforcement action. In the business context, this generally involves the employee or contractor sharing prohibited information in a way that is outside of their normal scope of employment or job performance. In addition to seeking damages from the breach of contract, the remedies can include cease and desist orders to get the offending party to stop sharing information.
NDAs often include their own financial remedies in the contract. However, they can also include actual damages from the breach. While these may be more difficult to establish, they can offer some greater protections for companies. Potential damages for NDA violations can include economic recovery for business interruptions, loss of business, legal fees, and even punitive damages. A lawyer could represent a person if they are accused of breaching a non-disclosure agreement in Tampa.
Talk to a Tampa Non-Disclosure Agreement Attorney
The biggest mistake you can make with an NDA is making it too broad to be enforceable. A document that prohibits the sharing of information in a reasonable manner, restricts someone’s future employment opportunities unreasonably, or creates a disproportionate burden through restrictive punitive damages is likely to result in the court refusing to enforce the NDA.
The second biggest mistake you can make with an NDA is not making it broad enough. An NDA that fails to protect the information that needs protecting is worthless and leaves you without remedies. Instead of trying to decide what type of NDA is right, get the help of the Feldman Legal Group. We can help you get the correct language you need to protect yourself. Schedule a consultation with a Tampa non-disclosure agreement lawyer to learn more.
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