Entering into a legally binding agreement can be an intimidating prospect, but taking the time to understand the different contracts and agreements available to you can give you peace of mind and assurance in the years to come. For businesses and individuals in Los Angeles, one of the primary contract types to become familiar with is a non-disclosure agreement (NDA). Understanding the ins and outs of an NDA and how it applies to you is an important first step in protecting important information.

What is an NDA?

In basic terms, an NDA, also known as a confidentiality agreement, is a contract between an employer and employee or two companies where information is exchanged. In such an agreement, both parties agree to keep shared confidential information a secret. This could be anything from trade secrets, processes, methods, or technology to patents, ideas, prototypes, or contact lists.

Creating an NDA is beneficial when two parties have confidential information they wish to keep secure and pertaining to the agreement. For example, a small business might have an invention in the works that could provide a competitive edge, but don't want to risk a rival accessing the information. An NDA would allow them to safely share the details of their invention without fear of it being disclosed to the public. A written agreement would give the business peace of mind that those involved in the NDA will not actively or accidentally disclose the confidential information.

Why is an NDA Needed in Los Angeles?

Whether you're the employer or employee signing an NDA, reasons for having an NDA agreement in Los Angeles can range from the legal to the seemingly mundane. Generally, having a legally binding, written agreement outlining the confidentiality of a product or information is the highest form of protection against any potential breach of trust. However, the number of reasons for creating an NDA in Los Angeles is almost limitless; these include, but are not limited to:

• The exchange of customer or client lists

• The invention of new products or processes

• The receiving of confidential business ideas

• The development of new marketing strategies

• Generating contracts between two businesses

• Setting limits on how confidential information can be used

• To protect previously signed NDAs

• To protect trade secrets

It's important to remember that NDAs are legally binding agreements and California and federal laws apply as well. By signing an NDA, either a company or employee can potentially be held responsible, both civilly and criminally, for intentionally revealing confidential information.

Why are NDAs Legally Binding in Los Angeles?

NDAs are considered legally binding agreements due to the nature of the protected information being exchanged. Failing to abide by these guidelines and maintain confidentiality can have serious consequences and a detriment to the contracting parties. In Los Angeles, there are two simple concepts to keep in mind when dealing with an NDA:

• First, under the California Civil Code, an NDA is a contract to protect confidential information by specifying how it should be treated.

• Secondly, under the California Penal Code, an NDA is a means of punishing someone who violates the agreement by revealing confidential information or using it to the detriment of the other party.

These two components are integral parts of a legally binding and enforceable NDA in Los Angeles.

What Happens if an NDA is Breached in Los Angeles?

When dealing with an NDA in Los Angeles, it's important to understand the consequences of breaching the contract. California law states that if the agreement is breached, then a civil action can be brought to court by the aggrieved party. Depending on the circumstances, this could result in anything from a court being issued an injunction, which forces the violator to abide by the terms of the NDA, to fines being issued if the person or business is found in breach.

In extreme cases, a violation of an NDA can even result in criminal charges being filed, which could lead to jail time and/or a hefty fine. Such outcomes are, of course, the farthest from ideal, so it's best to make sure that both parties understand the agreement thoroughly moving forward and act in accordance with it.

Getting Legal Aid for Your NDA in Los Angeles

Although non-disclosure agreements can be complicated from a legal perspective, they do not need to be a source of stress. When dealing with an NDA, parties should ensure they fully understand the contract, the implications of each party, and the repercussions of violating the agreement.

Getting assistance from a qualified attorney specializing in contract law is often the best way to ensure that all parties understand the agreement and can confidently move forward. Taking on a lawyer to handle the details of your agreement can relieve you of the burden of negotiating a deal while providing peace of mind knowing that it will be adhered to.

If you're looking for experienced counsel that understand local regulations in Los Angeles, UpCounsel's network of experienced lawyers can assist you. Whether you need a one-time consult or an entire freelance legal department, UpCounsel has the resources for businesses of all sizes. Access to quality attorneys, personalized profiles, and client reviews are several of the features UpCounsel provides to ensure you get the best legal service from start to finish.

Topics:

NDA,

Non-Disclosure Agreement,

Confidentiality Agreement