The parties desire to enter into discussions and negotiations regarding the purchase of material described in the agreement. The parties agree that any information obtained in the discussions will remain confidential and proprietary. All the terms and conditions of the agreement will be binding upon the successors and assigns of the parties and will survive the execution of the agreement and the termination of the discussions and negotiations between the parties.
Non Disclosure Confidentiality Agreement With Liquidated Damages In Middlesex
State:
Multi-State
County:
Middlesex
Control #:
US-00456
Format:
Word;
Rich Text
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FAQ
In California, it is possible to enforce a liquidated damages clause. The amount agreed to at the time that you and the other party sign the contract must be a reasonable estimate of losses that may be suffered should they fail to perform.
Factors Affecting Enforceability Before a liquidated damages clause can be enforced in California, several crucial factors are examined: Clarity of the Clause: The clause must be written with explicit terms that eliminate ambiguity about what constitutes a breach and the resultant damages.
Proving a breach of a confidentiality agreement can be very difficult. Damages for breach of contract (or an accounting of profits, where the recipient has made commercial use of the information) may be the only legal remedy available once the information is disclosed.
Liquidated damages must be clearly stated in a section or clause of a contract and agreed upon by the parties prior to entering a contract. Liquidated damages are a variety of actual damages and a remedy for breach of contract.
The legal position with regard to claim for liquidated damages is as follows: (a) Whatever the quantum of the loss sustained, the claim cannot exceed the sum stipulated in the contract. (b) Only reasonable sum can be calculated as damages, which in given situation may be less than the sum stipulated.
Because this would not be fair to the other party, Massachusetts law refuses to enforce liquidated damage clauses that are punitive to the breaching party. Only liquidated damage clauses that reasonably estimate the losses that the non-breaching party would sustain are enforceable in the state.
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.
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.
The key elements of Non-Disclosure Agreements: Identification of the parties. Definition of what is deemed to be confidential. The scope of the confidentiality obligation by the receiving party. The exclusions from confidential treatment. The term of the agreement.
What is a nondisclosure agreement? Whereas confidentiality agreements are typically devised in employment or personal situations to protect sensitive information, NDAs are often used in business and legal settings to protect trade secrets, client lists, and financial data.