Protect your business information and knowledge
It is a broad principle of law that a person who has received information in confidence cannot take unfair advantage of it. That person must not make use of it to the prejudice of the person who gave the information without obtaining his consent.
To be protected by the law of confidential information, information must be:
- Confidential in nature: having the "necessary quality of confidence".
- Disclosed in circumstances importing an obligation of confidence.
A confidentiality agreement or non-disclosure agreement is the best way of ensuring that information is disclosed is protected by an obligation of confidence. In addition to avoiding any question of whether the recipient was on notice that the information was not being disclosed in confidence, a contractual obligation is also easier to enforce than a claim under general law.
Please contact us for further details.
Frequently Asked Questions
Is a written agreement necessary? »
Regardless of whether or not there is a written agreement the civil law of confidence provides that a person who has received confidential information cannot take unfair advantage of it. However, a formal written undertaking creates a simple contractual obligation which, as well as being easier to enforce, will help support a claim under general law because it avoids any question that the recipient of the information knew he was required to treat it in confidence and creates the requisite relationship of confidence that is the basis of many claims. More importantly, it sets out in detail the conduct which the seller expects from the buyer.
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