A Confidentiality Agreement or Non-Disclosure Agreement is crucial for any Massachusetts business that wants to protect proprietary or confidential business information. A properly drafted agreement will clearly define the confidential information it is protecting: trade secrets, proprietary information, customer lists, pricing, source code, products, etc. In addition, the party receiving the information, an employee, business partner, customer, or independent contractor, will agree not to disclose and maintain the confidential information. Confidentiality or Non-Disclosure Agreements are crucial to protect information that has been developed at great time and expense, from falling into the hands of a competitor.
In general, Confidentiality and Non-Disclosure Agreements should be used whenever a business will be disclosing valuable confidential information. In particular, any business should present its employees and independent contractors, who have access to confidential information, with such an agreement. In addition, such an agreement should be used whenever a business sale is contemplated.