Dinn, Hochman & Potter, LLC

Contract disputes and nondisclosure agreements

Ohio businesses often have information that they do not want made available to the general public or a competitor. Yet, this information must typically be shared to some extent in order for business to be conducted. Depending on how this information is shared and with whom, contract disputes may arise.

In order to prevent the sharing of such information, many companies will employ nondisclosure agreements. These agreements are formulated between the employer and the employee. In essence, the employer agrees to share sensitive information with the employee to assist the employee in performing the job. Likewise, the employer agrees to not share this information with others unless specifically allowed to within the contract and/or scope of the assigned job.

One of the most common topics of a nondisclosure agreement is the client list. The client list of the business is often considered to be a valuable commodity. If this list were to fall into the wrong hands, it could be detrimental to the business; therefore, businesses want to ensure its protection. For this reason, employees are often asked to sign a nondisclosure agreement relating to the employer's clients.

Another common topic of a nondisclosure agreement relates to trade secrets. Businesses often have something special that sets them apart from the competition. It is in the best interest of the business for this something special to remain privileged information that is not shared with competitors or the general public. Again, a nondisclosure agreement can be used to protect this information.

Contract disputes often arise when nondisclosure agreements appear to have been violated. If a business believes that the terms of such an agreement have not been met and the company has suffered as a result, it may be necessary to take the matter before an Ohio court. Experienced legal counsel can assess the situation and offer guidance as to the best way to proceed.

Source: smallbusiness.findlaw.com, "A Nondisclosure Agreement", Accessed on Nov. 26, 2017

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