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The two kinds of NDA and what to do if one is broken

The two kinds of NDA and what to do if one is broken

On Behalf of | Nov 30, 2020 | Business Litigation |

Even if a business prides itself on public transparency, that likely does not mean all details are meant for the public eye. Luckily, non-disclosure agreements can help keep the intimate details of a business operation under lock and key.

And, while simple utilization of these agreements can help a business, that help may only extend as far as a business owner’s knowledge of their function and reach. For not only are there multiple kinds of NDAs, but equally important is having fine print to describe the punishment that may come should an employee break theirs.

The two kinds of NDA

Unilateral: This kind of NDA is one-sided and tends to show up in the news when a disgruntled or even sometimes well-meaning employee reveals information that they shouldn’t have. Regardless of intention, the revealing of company information can cause critical damage.

Mutual: Now while the unilateral relied on someone receiving information from a source, this kind relies on an exchange of information, where either side wants that exchange and the information within to be kept out of the public eye.

What to do if the NDA is broken

According to an article from Investopedia, depending on one’s situation and the information/profits at risk, one might often turn back to the fine print of an NDA. Therein ought to be the punishments that were originally laid out in case an employee broke their NDA. If a business decides circumstance calls for those punishments, they may proceed with that process.

Keeping track of business matters may feel overwhelming at times and seeing that someone you are involved in business with has violated the terms of an NDA may raise alarm. No matter what the outcome may be, seeking out professional help can be a wise move, especially during the stressful moments these contract breaches can bring. After all, a business’s future could be at stake.

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