What Are Non-Disclosure Agreements And When Should They Be Used?

A non-disclosure agreement is an agreement with a vendor, employee, independent contractor, or any other individual or entity, with the purpose of protecting a company’s confidential information.

The agreement should specify the information being protected, and should provide that the employee, vendor, etc., will not disclose the protected information except as required in the usual course of business.

A non-disclosure agreement is useful in many situations. One common use of a non-disclosure agreement is with an employee who will have access to compilations of customer data or unique and confidential business strategies and techniques.

Non-disclosure agreements are also advisable when one company is seeking to purchase another company, and in the course of the transaction will be provided with financial or other confidential information. The agreement would prevent the company from disclosing that information if the transaction is not completed.

Nicole M. Bolan, Attorney at Law

Blado Kiger Bolan, Tacoma, Wash.

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