Confidentiality and non-competition agreements
In your role working as a paralegal or legal assistant for eHarbour, draft a memorandum to Daniel Hudson, the eHarbour general counsel, discussing the need for all eHarbour employees and independent contractors to sign a new confidentiality agreement and non-competition agreement as a condition of continued employment and business relationship with eHarbour. In the memorandum, discuss and analyze the basic elements for a valid contract. In addition, discuss the benefits of a confidentiality agreement and non-competition agreement for eHarbour.
Sample Solution
Confidentiality agreement, also called a non-disclosure agreement, is a document through which a company asks their employee not to share confidential information that the person acquired during their contractual relationship. Confidentiality agreements can either protect both parties and so both parties are agreeing not to disclose or use each other`s confidential information. A non-competition agreement is a document by which a company asks their employees not to compete with the business in one of several ways. Usually, non-compete agreements restrict the activity of the employees only after they leave the company and the contractual relationship is terminated. Employers use these agreements for a variety of reasons: they can protect trade secrets, reduce labor turnover, and impose costs on competing firms.
