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Understanding the nondisclosure agreement

| Dec 2, 2019 | Firm News

It is possible that you may have been presented with a nondisclosure agreement by a new employer in Florida as part of your new hire onboarding paperwork. You may or may not have read through all of the terms in the contract as your first day is generally wrought with a lot of documents to sign. You may even just assume that such an agreement is so common, that your careful review is not needed. However, that is not the case. 

It is always important to understand what you are signing. A nondisclosure agreement can come in many forms and the provisions it outlines may vary greatly. As explained by Forbes, it is wise to ensure that any NDA that you sign has clearly stipulated provisions. 

One thing to review and understand is who is subject to the terms of the NDA. Some of these contracts are one-way and some are mutual. The latter requires both parties to keep specific information confidential while the former only places such limitations on one party. For employees, most NDAs are one-way, preventing them from sharing sensitive business information with external parties. You will also want to review the terms that outline how any potential disagreement is handled. Some contracts mandate the use of mediation or arbitration, but others do not and instead rely solely on litigation. 

If you would like to learn more about the elements that you should review carefully before creating or signing a confidentiality agreement, please feel free to visit the nondisclosure agreements page of our Florida business law website. 

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