Confidentiality Agreement Use Without Term
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FAQ
Confidentiality agreements can run indefinitely, covering the parties' disclosures of confidential information at any time, or can terminate on a certain date or event. Whether or not the overall agreement has a definite term, the parties' nondisclosure obligations can be stated to survive for a set period.
Non-disclosure agreements are used when the obligation to keep information secret is unilateral, while confidentiality agreements are used when multiple parties have to keep the multilateral exchange of secrets confidential.
They can't protect some information. The information not protected by a confidentiality agreement includes: Information the recipient knew prior to signing the agreement. Information the recipient learns from alternative sources or information that is public knowledge.
The Term of the Agreement Typically, the standard use for NDAs ranges from 1 to 5 years. However, this all depends on the nature of the transaction or market conditions. As an employer or business owner, it is in your interests to enforce an NDA for as long as possible.
Common timeframes range between one year to 10 years, however, depending on the information that is to be kept private, an NDA may be indefinite.