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A binding contract must be supported by consideration. That means the person signing the confidentiality agreement needs to get something in return for his or her promise.
The agreement should identify the purpose to which the recipient can put the confidential information. All other uses of the confidential information should be prohibited. Sometimes a confidentiality agreement states that no rights are licensed by the confidentiality agreement.
In Amos v. Commissioner, T.C. Memo 2003-329 (December 1, 2003), the U.S. Tax Court ruled that a confidentiality clause in a personal injury settlement made 40% of the settlement taxable as ordinary income.
Employees should maintain such information in confidence and use such information only in the interest of [Company Name]. The employee may use or disclose information learned or acquired through his or her association with [Company Name] only for the performance of his or her job or as otherwise permitted by law.
An employee confidentiality agreement is a contract between an employer and an employee that specifies certain confidentiality provisions, such as preventing the employee from disclosing certain specified information relating to the conduct of the employer or the termination of the employment contract.
For your NDA to be a valid contract, it has to have consideration.
Ingly, to protect the Confidential Information that will be disclosed during employment, the Employee agrees as follows: Employee will hold the Confidential Information received from [Company Name] in strict confidence and will exercise a reasonable degree of care to prevent disclosure to others.
Welcome to Progressive Legal, your specialist IP law firm. A Deed of Confidentiality is required in Australia when one party is not providing any ?consideration? to the other in return for the confidential information.