Agreement Confidentiality Between With No End Date In Illinois
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FAQ
Whether or not the overall agreement has a definite term, the parties' nondisclosure obligations can be stated to survive for a set period. Survival periods of one to five years are typical. The term often depends on the type of information involved and how quickly the information changes.
NDAs are enforceable when they are signed — if they are properly drafted and executed. NDAs are enforceable once signed, provided they have been drafted and executed properly. Unilateral NDAs need only the signature of the receiving party, whereas mutual non-disclosure agreements need the signatures of both parties.
In some instances, the parties may agree that a specific duration is long enough to require an obligation of confidentiality. In other situations, the theory may be that there is no way to know how long certain information will remain valuable if not disclosed, so the duration should be perpetual.
Completing the Confidentiality Agreement The "Receiving Party" is the person or company who receives the confidential information and is obligated to keep it secret. You'll need to fill in information specific to your circumstances in the spaces provided, such as the parties' names and addresses.
NDAs with employees are generally legal in Illinois. However, there are certain limits employers need to be aware of, and several best practices that will help ensure your agreement is immune from challenge in court.
NDAs are enforceable and can be held up in court if they are clear, specific, and signed by the relevant parties. Non-disclosure agreements that don't meet these criteria may be challenged in court. NDAs that go against public interest and cover up criminal activity are not enforceable.
An NDA could be unenforceable if it is too broad, is not for a defined time period, covers information that is not confidential, or asks for illegal conduct.
When there is no expiration date indicated in the NDA, it will remain valid until one party officially terminates it by informing the other party in writing that they wish to end the agreement. In this situation, both parties must comply with all obligations outlined in the NDA until it has been terminated.
An indefinite term could potentially be viewed as unreasonable to the receiving party. The receiving party typically wants a definite expiration term inserted into the agreement. Ideally, an NDA will cover an appropriate amount of time to protect the interests of the disclosing party.
