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Issues that might arise with confidentiality agreements

On Behalf of | Jun 15, 2018 | Business Litigation

Any Nevada business, no matter its size, is going to want to take steps to protect its trade secrets and other information that is uses to stay competitive. Not only is this a way of preserving a business’s ability to make a profit, it also is a matter of justice when a Henderson resident has employed his or her time and talent to develop new and creative ideas.

Businesses often rely on confidentiality agreements with their employees, vendors, other business partners and even, on occasion, customers in order to secure this information. In theory, confidentiality agreements are legal and binding contracts, and usually allow a business owner to sue for relief if someone should violate them.

Still, there are some issues that might arise with respect to these agreements, and these can lead to a confidentiality agreement dispute that can spill over in to business litigation.

For one, like any other type of contract, a confidentiality agreement has to be enforceable under Nevada law, and the other party to the agreement may make an argument that it does not have to follow it because it is not a binding contract.

Moreover, even if the agreement can be enforced, there may be questions about interpretation of the agreement. It is hard to define precisely what sort of information a confidentiality agreement is meant to protect without disclosing the secrets themselves, so there are often legal disputes about what a person is or is not allowed to disclose under a confidentiality agreement.

Confidentiality agreements are important to the operations of most businesses, but they can unfortunately wind up being the subject of a legal dispute even when they are drafted with the utmost care. In these sorts of situations, an experienced business litigation attorney can be of valuable help.

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