If you own or work for a company in Louisiana and are looking to hire an external agency to help you with some advertising campaigns, you will likely have to share sensitive business information with them. Similarly, if you are considering a merger with another company, your conversations with people at that business will no doubt involve the disclosure of confidential data about your sales, marketing, products or services.
In order to protect your business in situations like these, Forbes recommends the use of a nondisclosure agreement, also known as a confidentiality agreement. This is a type of legal contract that documents your wish and rights to keep certain information private and prevent another party from disclosing it. It may also give you the ability to pursue legal action if the other party fails to keep the information secret.
You may also use nondisclosure agreements with your employees, as many of them will have access to important and sensitive business information in order to properly do their jobs. These contracts should clearly outline what information is covered and the duration that the contract will be effective for. An NDA may be mutual or non-mutual depending on the needs of the situation and if both parties have sensitive information to protect, such as in the case of talks about a potential merger.
This information is not intended to provide legal advice but is instead meant to provide an overview to businesspeople in Louisiana about the benefits of nondisclosure agreements and when they may be useful for their companies.