The Kentucky non-disclosure agreement (NDA), or confidential disclosure agreement, is a legal document that sets the terms and conditions for the protection of certain sensitive information shared between the parties that sign the NDA.
The main goal of this document is to prevent the unauthorized sharing of confidential information with any third party.
What is a Trade Secret in Kentucky?
A trade secret in Kentucky is certain information about the business entity's operation that is considered to be their competitive advantage on the market and is, for that reason, protected from being known to the public.
Types of Non-Disclosure Agreements
The two main types of non-disclosure agreement forms are mutual and unilateral NDAs. This differentiation is made based on which party takes on the obligation of keeping the shared information confidential.
The unilateral NDA creates such an obligation only for one party, while the mutual NDA creates the obligation for all the parties signing the document.
Legal Requirements for Kentucky Non-Disclosure Agreement
Here, you can see the state laws and requirements for the non-disclosure agreement template in Kentucky:
What Can a Non-Disclosure Agreement Be Used For in Kentucky?
The Kentucky non-disclosure agreement can be used in various situations based on the type of information the parties want to protect, the level of confidentiality of this information, and other factors.
In this section, we will cover only the most common reasons the parties decide to create the NDA:
NDA Uses and Scopes in Kentucky
Protection of information during employment: Companies choose to issue an NDA to protect the information their employees get access to during their employment. This document is usually signed by the employees along with the employment agreement.
Protection of information during research collaborations: The parties can use this type of NDA to protect their findings during the research process or to protect the results of their research.
Protection of business information: The parties draft this type of NDA to protect their business or trade secrets during their communication with business partners, suppliers, vendors, and others.
Protection of information after litigation: Used by the parties who want to keep confidential the details of their dispute settlement agreement.
Kentucky Non-Disclosure Agreement FAQ
Yes, the NDA is a legally binding document in Kentucky. All the parties signing it must have legal capacity so the document can be binding for them.
No, the NDA doesn’t need to be signed in front of a witness to be valid. However, if the parties want to additionally authenticate the document, they can include the witness's signature.
You can always decline to sign an NDA in Kentucky. However, you should consider all the consequences of that action in terms of your relationship with the party issuing the NDA before refusing to sign it.