The New Mexico non-disclosure agreement (NDA), or confidential disclosure agreement, is a legal document that defines the confidential information of the parties signing the document and forms the obligation of each party not to disclose the confidential information to third parties.
What is a Trade Secret in New Mexico?
A trade secret in New Mexico is confidential business information, such as design, creative work, formula, practice, method, and more, that can be considered a competitive advantage of a certain business entity and, for that reason, must be kept confidential.
Types of Non-Disclosure Agreements
In New Mexico, there are two types of non-disclosure agreement forms, depending on which party is obliged to keep the shared information confidential:
Two Types of Non-Disclosure Agreements
Unilateral NDA: Here, only one party is signing the document and taking on the obligation of keeping all the shared information confidential. It is mostly used by companies that want to protect the confidential information their employees get access to during their employment.
Mutual NDA: Here, all the parties are signing the document and accepting the obligation to keep all the shared information confidential.
Legal Requirements for New Mexico Non-Disclosure Agreement
This section presents the state regulations for the New Mexico non-disclosure agreement template:
What Can a Non-Disclosure Agreement Be Used For in New Mexico?
The New Mexico non-disclosure agreement can be used in different situations based on various factors, such as the type of information the parties want to protect, the level of confidentiality of the information, or the type of entity the party is sharing their information with.
Below, you can see the most common reasons for issuing the NDA:
NDA Uses and Scopes
Protection of business information: The NDA is mostly issued in business interactions where the party signing the NDA has access to the sensitive information of the party issuing the NDA.
Protection of information during employment: The NDA is also often signed along with the employment agreement. Employers use it to protect the sensitive information their employees get access to during the employment period.
Protection of intellectual property: Used by parties that want to protect their inventions, software, creative work, and other types of intellectual property before they get formal protection from the intellectual property laws and regulations.
Protection of information during the merger and acquisition: Used for protecting the confidential information shared in the process of a company’s merger or acquisition.
New Mexico Non-Disclosure Agreement FAQ
Yes, the NDA is a legally binding document in New Mexico. However, for the document to be fully binding for all the parties, each party must have the legal capacity to sign it.
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 signatures.
Yes, you can always decline to sign the NDA in New Mexico. However, you should keep in mind that this action might affect the relationship between you and the party issuing the NDA.