Free Nevada Non-Disclosure Agreement

When Do Companies Use the Non-compete and the Non-Disclosure Agreement in Nevada?

To trust a fellow human fully and to trust that they will keep confidential the information you shared with them in confidence, you have to create a legally binding document that tells the person you are sharing a business secret with that they will be liable legally should they divulge the information to a third party.

In the business/ corporate and the legal realm, there are different kinds of documents you could create and sign alongside the other party receiving the confidential information or trade secrets. The documents include confidentiality agreements (CA) or non-disclosure agreements (NDAs), non-solicitation and non-compete agreements.

The confidentiality agreement in Nevada

An NDA refers to the document that allows its creator (the disclosing party) to safeguard their trade secrets and other forms of confidential information using a written and a legally binding signature. The person who learns about the trade secrets from the disclosing party is the receiving party.

By signing the document, the written contract is enforceable in the court of law, and the receiving party agrees to take on the obligation of keeping a secret the contents of the contract. Whether you are an employer or a business person looking to enter into business with another person, you have to create the NDA from a free Nevada non-disclosure agreement form available online.

The form has specific sections which you must fill out duly for the legality of the contract. Two types of NDAs exist - the unilateral and the bilateral/ mutual NDAs.

Unilateral NDAs feature a disclosing party and a receiving party. The receiving party agrees to keep the information a secret, and he or she will be held liable in court if there is a breach.

Bilateral NDAs feature two or more parties promising each other not to divulge the trade secrets of the other. Bilateral/ mutual NDAs are common with business partners seeking to initiate a joint venture. For as long as the partnership is on and for some time after the venture, the parties have to keep the information confidential.

  • When are NDAs necessary?

    • When discussing the licensing or sale of a product or an advanced technology

    • If and when your employees have access to the business’s proprietary or private information.

    • When receiving information from a company that deals with confidential information.

    • When you are presenting an offer to an investor or when sharing information with a potential buyer.

Conditions for the validity of the NDA

  • Your NDA/ confidentiality agreement in Nevada must have:

    • A definition of the information regarded as confidential. The definition could be general or specific, and you could also mark the information confidential. The definitions ensure that nothing falls through the cracks.

    • A list of information under exclusions. This information is what the receiving party knows about either because it is publicly available, obtained from 3rd parties, and researched by the receiving party before signing the NDA, or if it was developed independently.

    • It should have the obligations of the receiving party. This section states that the receiving party will be held liable in the court if they breach the contract. Also, the receiving party cannot print, copy or publish the NDA or parts of the NDA without a written notice from the disclosing party.

    • There should be a time during which the receiving party will be bound to the contract

    • The disclosing and the receiving parties must sign and date the NDA.

Non-compete agreements

  • Other than the free Nevada non-disclosure agreement, a non-compete agreement could be drawn between an employer and an employee to protect trade secrets, forbid employees from working for/ the competition, forming competing companies, or soliciting customers. It is, therefore, clear that this is one of the most restrictive documents drawn by companies. You should, however, note that the state has revised laws that apply to the restrictions put in place by the non-compete. Under the new law, the non-compete must meet the following conditions:

    • A valuable consideration should support it

    • It shouldn't impose unnecessary restrains for the protection of the employer.

    • The non-compete must not impose an undue level of hardship on employees.

    • And, the contract should not impose an inappropriate restriction regarding the valuable consideration that supports the document.

    • Also, it shouldn't restrict former employees from offering their services to a client or a customer if there was no solicitation and the client chose to seek the services from a former employee voluntarily.

    • Note that if the termination of the employee results from restructuring, reduction of force, or reorganization, the non-compete will only be enforceable when the employer pays salary, benefits, equivalent compensation, as well as severance pay.

Violations on the new laws are void and unenforceable, and if the court finds that the non-compete carries improper provisions, despite being supported by a valuable consideration, it will revise the non-compete so that it complies with the law.

Geographical and time restrictions in non-competes

The geographical and time restrictions applicable to non-competes depend on the profession. Most reasonable non-competes have set a 2-year restriction for an employee within a 5 – 50-mile radius. But, you should keep in mind that the restrictions are either reasonable or unreasonable depending on the sensitivity of the information and the impact the restriction will have on the economic status of the employer.

Would you like to create a CA in Las Vegas, Carson City, Henderson Reno, Las Vegas Valley, Sparks, Elko and any other city in Nevada? Download our free non-disclosure forms today.