Updated on August 15th, 2022
An Alabama non-disclosure agreement is a legal agreement between two parties that establishes a legal obligation to keep shared proprietary information (trade secrets) confidential. Such information includes, but is not limited to, designs, financial data, business plans, and software. For the contract to be enforceable, the trade secrets must be valuable and unknown to the general public.
NDAs can be used in situations where both parties will share information with each other (bilateral) or, more commonly, when one party discloses info and the other receives it (unilateral). By signing the form, the parties agree to keep all discussed trade secrets private and acknowledge the repercussions for failing to do so.
- Statutes: §§ 8-27-1 to 8-27-6
- Definitions: § 8-27-2
- Statute of Limitation (§ 8-27-5): After it’s been discovered that misappropriation has taken place, the plaintiff has two (2) years to bring a case against the defendant.