Top 5 Things to Consider for a Non-Disclosure Agreement in Chicago
Signing a non-disclosure agreement (NDA) is an important step for business owners and those engaging in secretive conversations or transactions2 min read
Signing a non-disclosure agreement (NDA) is an important step for business owners and those engaging in secretive conversations or transactions. Once signed, all parties are legally obligated to protect confidential, proprietary, or sensitive information. That includes not disclosing it to anyone outside of the agreement. For businesses operating in Chicago, there are unique circumstances to consider when entering an NDA. Here, we’ll explore the top five things to consider when entering an NDA in Chicago.
While NDAs exist in different forms, their primary purpose is to protect parties involved in a business transaction. When both parties make an exchange of confidential information, a NDA is used as an assurance of privacy and a safety precaution.1 The ultimate goal is to minimize the risk of any confidential information being exposed outside of those involved in the agreement. Before signing an NDA, it is important you first understand the language of the contract as well as the law.
When engaging in a business transaction, the NDA should be tailored to cover all the confidential aspects of the specific transaction. The agreement should specify the parties involved, the purpose of the information, the duration of the agreement, and the consequences of mistreatment of the confidential information. Any questions raised should be discussed between the parties to make sure all parties understand the terms of the agreement.2
When entering into a NDA in Chicago, it is important to consider the local laws regulating NDAs. Chicago follows the state of Illinois’s laws that dictate how NDAs are structured, enforced, and enforced.3. While the First District of the Illinois Appellate Court has interpreted the state’s law on NDAs in an expansive way,4 small businesses and entrepreneurs should always be mindful of these laws when entering into a NDA.
It is also important to consider the types of information typically included under NDAs. These can include trade secrets, confidential business information, software and technology, financial records, customer or employee information, and more. Parties entering into an NDA should make sure all the relevant information is included in the contract before signing. Additionally, when engaging in a NDA, you should confirm that any foreign law or country-specific regulations do not override the agreement.
UpCounsel offers the best legal counsel to ensure an NDA is properly executed. Business owners in Chicago can find experienced attorneys covering any type of NDA, no matter the purpose. Whether you need a custom agreement or a template document, all legal services on UpCounsel come with a money-back guarantee. To make sure your NDA is strong and fully protects your interests, UpCounsel offers high-quality and cost-effective services.
When entering into an NDA, the five factors mentioned above should be taken into account. To find the best legal representation for your NDA and mitigate your risks, UpCounsel is the preferred provider of high-quality legal services for clients in Chicago.