If you are a business owner or executive in Louisiana and you are in a position where you must share potentially sensitive information about your business with someone outside your company, you should know about the benefits of a confidentiality agreement. These contracts are also commonly referred to as non-disclosure agreements.
As the name implies, these contracts focus on maintaining confidence around information. However, Forbes explains that there really are two very and equally important aspects of these agreements. Certainly the first one is for the agreeing party or parties to not disclose or keep in confidence the details identified in the contract. In addition to that is the requirement that a party being given this confidential information does not actively use that information for their own benefit.
A good nondisclosure agreement will outline parameters for both of these elements. It should specify exactly what information is to be kept confidential and may even detail the manner in which information may be provided. Some agreements may be mutual and therefore both parties to the contract will be sharing sensitive information and be required to keep that in confidence. Others will be non-mutual if only one of the parties needs to share confidential information. Choosing wisely here is important to ensure that the right type of contract is created.
If you would like to learn more about how and when a non-disclosure agreement may be needed for your business, please feel free to visit the confidentiality agreement page of our Louisiana business and contract website.