confidentiality obligations
Definition
Confidentiality obligations are legal duties that require you or another party to keep certain information private and not share it with outsiders. These duties typically arise from a signed agreement, but they can sometimes exist automatically under the law depending on the relationship between the parties. When you have these obligations, sharing the protected information without permission can expose you to a lawsuit.
Example
If you hire a software developer and have them sign a contract with confidentiality obligations, they cannot take your customer list or proprietary code and share it with a competitor. The obligation legally binds them to keep that information secret even after their work for you ends.
Watch Out
Confidentiality obligations can last long after a business relationship ends, so always check the agreement for an expiration date because some are written to last forever.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.