Navigating Through Confidentiality Agreements in Chicago
Confidentiality is one of the core principles enforced in legal agreements3 min read
Confidentiality is one of the core principles enforced in legal agreements. Whether it’s a non-disclosure agreement (NDA) or a confidentiality clause within a contract, protecting confidential information is important. In Chicagoland, there are certain legal considerations business owners should take into account when making a confidentiality agreement. Keep reading to find out the top 5 legal aspects to consider in a confidentiality agreement.
Confidentiality agreements are essential for protecting the privacy and integrity of relationships between two businesses or between a business and an individual. A confidentiality agreement might be drafted to ensure that two businesses agree not to exchange confidential and proprietary information with one another, or as an assurance that someone with whom the company is doing business does not misuse any confidential information they receive during the course of working together. For business owners in Chicago, the details of a confidentiality agreement should be tailored to the specifics of local law, in order to ensure it is enforceable.
The importance of establishing protections around confidential information cannot be overstated. Any person or entity who is privy to confidential company information can leverage that information to compete against the company and gain a competitive advantage. Many entrepreneurs hired third-party companies and independent contractors who may not even be aware of the confidential nature of the information they’re receiving. To help ensure the guidelines are followed, consider the following top 5 things to consider with regard to confidentiality agreements:
1. Defining Confidential Information- The agreement should include a clear and concise definition of the confidential information that is being protected. This definition should include all pertinent details of what information is confidential, and the type of information that the other party should not be using for their own gain. This needs to be drafted in a precise way that is specific to the company’s circumstances.
2. Limitations on Use- A confidentiality agreement should also stipulate how the other party may use the confidential information. This should appear as a separate section and should explain the limitations, such as how the confidential information may be used, and may not be used.
3. Exclusions from Protection- Companies should also consider including a statement in the confidentiality agreement that identifies information that is excluded from the agreement’s protection. Forinstance, general information that is publicly available, or information that is already in the possession of the other party.
4. Duration of Agreement- The agreement should also clarify the length of time for which it is in effect and provide notice of when the agreement will expire.
5.Remedies for Breach- Including a provision that states the remedies that will be taken if there is a breach of confidentiality is important. This provision should include a “material breach” clause that outlines the specific remedies that can be claimed in the event of a serious breach.
When crafting a confidentiality agreement to ensure the privacy of company information, make sure to hire a legal representative who is familiar with local laws. It is important to ensure that the agreement is written in a way that is enforceable and tailored to local laws. UpCounsel provides a multitude of experienced attorneys who specialize in Chicago law to help navigate through the complexities of drafting a confidentiality agreement. With UpCounsel’s extensive network of attorneys, businesses in Chicago can access high quality legal services from those that understand local regulations. And with the profiles of our attorneys displaying client ratings and reviews of recent work, businesses can confide their needs to the right attorney proficient in confidentiality agreements.