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Violating an NDA can have serious consequences ? NDAs are legally binding contracts. If an employee has violated an NDA, then the company may take legal action. The most common claims in NDA lawsuits include: Breach of the contract (such as the breach of NDA)

Whistleblowing with an NDA in place Along with generally being unenforceable, whistleblower rights are available despite of contractual obligations. Protected activities include reporting sexual harassment, illegal behavior at work, and taking part in formal legal processes as a witness.

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Generally speaking, no type of NDA can prohibit a person from reporting a crime. Courts have found that an NDA that attempts to bar someone from reporting a crime is against public policy.

An NDA creates a confidential relationship between the parties, typically to protect any type of confidential and proprietary information or trade secrets. As such, an NDA protects non-public business information. Like all contracts, they cannot be enforced if the contracted activities are illegal.

There are three types of NDAs: unilateral, bilateral, and multilateral. Read on to learn when you should use each type. You'll also learn how to use a contract management tool like Ironclad to draft and manage them.

Public records, including SEC filings or company addresses, are not covered by these confidentiality agreements. The courts can also interpret the scope of an NDA in ways that one or more participants may not have initially expected.