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Home Q&A Forum Business contract confidentiality clause?
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Business Contracts

Non-Disclosure And Confidentiality Agreement

California

Asked on Sep 21, 2023

Business contract confidentiality clause?

I am a business owner in the process of signing a contract with a new vendor. We have agreed on the terms of the contract, but I am concerned about the confidentiality clause. I need to ensure that the vendor is not able to share the details of the contract with other businesses or individuals that could potentially be in competition with us. I want to know what can be done to ensure that the confidentiality clause of the contract is enforced.

1 Attorney answer

Answer

Business Contracts

California

Answered 348 days ago

N'kia N.

ContractsCounsel verified

Business Lawyer
Licensed in North Carolina
Free Consultation

A business might use a non-disclosure agreement (sometimes called an "NDA," a "Confidential Disclosure Agreement," or a "CDA") to prevent others from disclosing its confidential information. Confidential information includes the business' trade secrets, as well as other proprietary information that does not constitute trade secrets. Generally, there are two main types of non-disclosure agreements. In a unilateral non-disclosure agreement, one party agrees not to disclose the other party's confidential information. In a mutual non-disclosure agreement, both parties agree not to disclose each other's confidential information. It is usually best to execute a non-disclosure agreement prior to the disclosure of confidential information. Disclosed information cannot be un-disclosed. Also, a party that has already received confidential information without restrictions might have little to no incentive to sign a non-disclosure agreement after the fact. For advice on or assistance with a non-disclosure agreement, speak with a knowledgeable business contract attorney. Good luck!

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