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Frequently Asked Questions

What are Non-Solicitation or Non-Competition Provisions in an NDA and when might they be included in the terms?

Non-Solicitation or Non-Competition Provisions are specific clauses that can be included in a Non-Disclosure Agreement (NDA). These provisions are typically considered when the disclosing party plans to share business strategies or future business dealings with the receiving party. The purpose of these provisions is to prevent the receiving party from using the disclosed confidential information to compete against the disclosing party or to solicit its clients or employees. In the context of an NDA, non-solicitation provisions prevent the receiving party from approaching or enticing away the disclosing party's clients, customers, or employees. On the other hand, non-competition provisions restrict the receiving party from entering into a similar profession or trade in competition against the disclosing party. These provisions are not always included in NDAs, especially when the business relationship is yet to commence. However, they become crucial when the disclosing party intends to share sensitive information related to business strategies or future business plans. By including these provisions, the disclosing party can protect its business interests and maintain its competitive advantage.
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