Signing a contract with a business for a work project or venture may lead to a profitable outcome, but you want to make sure you do not do anything to cause the business owner to sue you for breaching the contract. This might happen if you disclose information that violates the contract’s confidentiality provision.
Not all contracts bind the signatories to keep information secret. Review your contract carefully to see if it requires you to maintain confidentiality about the information you may learn from the business relationship.
Information you should not disclose
According to Chron, the general idea behind a confidentiality provision is that you do not disclose information that could harm the other party. A common example is if you contract with another business and learn how the business conducts its marketing. You might also gain some inside information about how they make their products. If competitors were to learn this information, it could seriously harm the business.
Your contract may include a section that binds you not to reveal information that may cause economic harm to the business. Keep in mind that if you own a business and have your own trade secrets to protect, the confidentiality provision should protect you as well.
Check duties and rights for more information
The contract’s duties and rights sections may support your obligation to keep certain information secret. While a duties section spells out what the signatories should do, it may also describe forbidden actions. For example, the contract may tell you who you can or cannot hire to help you carry out your end of the agreement. The other party might not want people from the same industry to work with you.
The rights section spelled out in a business contract lets the signatories know what they can do in the event of a disagreement. You may learn what could happen if the other party decides to sue you. Your contract might give you the right to have your case heard in a specific venue or allow you to seek mediation or arbitration for your dispute.
A careful review may prevent litigation
Business contracts should pave the way for a profitable endeavor without causing you legal problems, so review your agreement carefully before signing it. Knowing what kinds of information the other party does not want you to reveal may prevent a costly court battle.