Every successful business has a few tricks of the trade that helped it become what it is. Sometimes theses practices are nothing too special, just something that worked. And other times they are trade secrets that are rarely discussed and kept under lock and key. When business owners attribute their success to these 'trade secrets' they usually take extra steps to protect them from their competitors. One of the most commonly used methods of protection for a company's trade secrets is the use of nondisclosure agreements.
The purpose of a nondisclosure agreement is pretty easy to understand. It is a contract between an employer and their employee, where the employee promises not to disclose their employer's valuable information to anyone outside the company. These agreements can be used to protect a number of different things but most commonly they are used to protect trade secrets.
For business owners wishing to protect trade secrets through the use of nondisclosure agreements, it is important that they have a well-drafted contract. Nondisclosure agreements can be challenged in court, and having a company's successful secrets made public because of a poorly drafted, invalid or unlawful contract may lead to the company suffering an economic loss.
There are certain elements that must be present within a nondisclosure agreement for it to be considered enforceable. Simply stating that the contract is a nondisclosure agreement does not make it legally binding. An experienced and trustworthy business law attorney can help draft an effective contract that creates a valid confidential relationship between an employee and employer. With their help, business owners can adequately protect their trade secrets with a completely enforceable nondisclosure agreement.