New Jersey Confidential Letter Agreement (With Joint Venture Party in Acquisition, as to Confidentiality and Noncompetition)
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FAQ
Under current New Jersey law, these agreements are generally enforceable and must be considered on a case-by-case basis. A non-compete is enforceable as long as it is reasonable in duration, territory and scope.
Confidentiality of the Agreement The parties agree that the terms and provisions of this Agreement shall be kept confidential and shall be disclosed only to those persons and entities as required by law or as permitted by the other party hereto.
Confidentiality/non-disclosure agreements are contracts in which the employee promises not to disclose certain proprietary information, such as trade secrets. Non-compete agreements are contracts in which the employee agrees not to unfairly compete against his/her (former) employer.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
Whereas NDAs are often used in business and legal settings to protect trade secrets, client lists, and financial data, confidentiality agreements are typically devised in employment or personal situations to protect sensitive information.
Last week, the New Jersey Assembly's Labor Committee passed bill A3715, designed to sharply limit the available provisions, use, and enforceability of restrictive covenants in employment contracts by New Jersey employers.
For a non-compete agreement to be enforceable, New Jersey courts require that the non-compete agreement (1) protects the legitimate interests of the employer; (2) does not impose an undue hardship on the employee; and (3) is not injurious to the public.
Another way to defeat a non-compete contract is to show that your employer has behaved illegally or unethically towards their clients. In general, an employer will not want these matters raised in a court case, so they may void your non-compete agreement if you have proof of these behaviors.