Non-disclosure agreement

What is a non-disclosure agreement? A non-disclosure agreement or otherwise known as a "NDA" is a legal agreement that protects an employer's important asset such as priviliged information. Privileged information could be an asset such as methods of getting business, processes, certain business or trade secrets to name a few items.

The purpose of a Non-Disclosure Agreement is to protect the employer's assets and discourage the employee(s) from competing against the employer by using the employer's information against the employer. For example, assume that John Smith owns a furniture store and John hires Jack Johnson as a salesperson and manager of his furniture store. John Smith has Jack Johnson sign a non-disclosure agreement stating that Jack will not use the confidential information inquired during his employer to compete against John Smith in the furniture business.

The key to a non-disclosure agreement is keeping it limited in scope and maintaining the threat of potential litigation if the employee breaches the non-disclosure agreement.

Sean Robertson is a business and asset protection attorney based in downtown Chicago and Naperville, Illinois. Sean Robertson can be reached at (312) 498-6080 or (630) 364-2318.