A Non-Disclosure Agreement commonly known as NDA is a legally binding contract establishing a confidential relationship between two or more parties.
The parties agree on the sensitivity of the information disclosed and agree that this information will not be disclosed to any other party.
This is commonly known as a confidentiality agreement.
Some key factors of a non-disclosure agreement are:
An NDA is a legal binding contract and violating this can have serious consequences.
If an NDA is violated the other party may take legal action.
Breach of contract is the most common lawsuit of an NDA.
Breaking an non-disclosure agreement contract could have serious financial penalties even though this is not deemed as a crime. Not respecting the terms of an NDA will leave you open to a lawsuit from the other party in question and may result in the offender to pay financial damages and possibly all legal costs.
An NDA is used to protect confidential information from been made available to the public. The purpose of signing an NDA is so that the information shared is for the recipient’s eye’s only and the information received is not to be shared.
In order to validate an NDA, one could have a witness sign the contract thus this will not be questioned in a court of law, however, it is not mandatory to have an NDA signed by a witness or have it notarised.
In business (weather selling something or sharing an idea of a new concept) you are likely to share sensitive information thus an NDA is an important legal agreement used to protect your intellectual property.
The answer to the question is YES definitely if you can prove that the party in breach has profited from the breach.