obligation of confidence
Definition
An obligation of confidence is a legal duty that prevents a person from sharing or misusing private information they received in a situation where they understood it was meant to be kept secret. This duty can arise automatically from the circumstances, like when an employee learns trade secrets at work, without anyone signing a formal agreement.
Example
If you share your secret recipe with a manufacturer to get a production quote, that manufacturer has an obligation of confidence not to share your recipe with your competitors.
Watch Out
Even without a signed confidentiality agreement, someone who leaks your sensitive business information may still have broken this obligation and you may have legal grounds to sue them.
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.