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Essential tips before signing a non-disclosure agreement

On Behalf of | Jul 3, 2024 | Contracts |

Non-disclosure agreements (NDAs) are legally enforceable in Ohio. As such, it’s important to understand what you are getting yourself into before putting pen to paper. You do not want to commit to a legally binding agreement that is not in your best interests.

Here are some crucial considerations that can help you make the right decision regarding confidentiality agreements.

Understand the purpose and scope of confidentiality

An NDA’s primary function is to protect a company’s confidential information like trade secrets, client lists and other property information. Ensure you comprehend the specific information you’re agreeing to keep private to know your obligations, remain compliant and prevent misunderstandings.

Pay attention to the duration of the agreement

NDAs usually specify the period during which the parties are bound to confidentiality. It could be during your employment and for a certain period after you leave. Verifying the duration an NDA remains binding can help avoid unintended long-term commitments.

Look out for broad or vague language

Read through the terms of the NDA carefully to ensure all terms are clear and reasonable, with no room for misinterpretation. Seek clarification if anything is unclear, from the applicable exclusions to the consequences of breaching the agreement. It can help you identify unfair provisions and save you a lot of trouble.

Consider how the NDA may affect future employment opportunities

Understand any restrictions in place that could hinder your employment prospects in the future. Some NDAs include non-compete agreements that may narrow down job opportunities especially if you are looking to stay within the same industry.

If you are uncertain about the terms of an NDA, consider seeking legal guidance before signing anything. It can help provide insights into potential pitfalls and ensure your interests are safeguarded.