What is the difference between an NDA and a non-compete agreement?

What is the difference between an NDA and a non-compete agreement?

An NDA, or Non-Disclosure Agreement, is a contract that prevents parties from sharing confidential information. A non-compete agreement restricts one party from entering into a competing business for a certain period after leaving a company.

Can you give me examples of when I would use each?

Sure! You'd use an NDA when sharing sensitive information with potential partners or employees. A non-compete is often used when hiring employees to protect business interests after they leave.

Are there any legal limitations on non-compete agreements?

Yes, non-compete agreements must be reasonable in scope, duration, and geography to be enforceable. Courts often scrutinize them to ensure they don't unfairly restrict a person's ability to work.

What happens if someone violates an NDA?

If someone violates an NDA, the injured party can seek legal remedies, which may include monetary damages or injunctive relief to prevent further disclosure.