The Texas 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 an obligation for the parties not to share the confidential information (i.e., a trade secret) with the public.
What is a Trade Secret in Texas?
In Texas, a trade secret is a certain practice or method that is considered essential for the operation of a certain business entity, its success, and its position on the market, and that must be kept confidential as its competitive advantage over its competition.
Types of Non-Disclosure Agreements
In this section, you can see the main types of non-disclosure agreement forms. The main difference is based on who takes on the responsibility of keeping the shared information confidential.
That being said, we make a difference between:
Two Types of Non-Disclosure Agreements
Unilateral NDA: Here, the party signing the document accepts not to share confidential information about the party issuing the NDA.
Mutual NDA: Here, all the parties agree not to share confidential information with the public.
Legal Requirements for Texas Non-Disclosure Agreement
This section outlines the legal framework for the Texas non-disclosure agreement template:
What Can Non-Disclosure Agreement Be Used For in Texas?
The Texas non-disclosure agreement can be used in different situations based on the type of information the parties want to protect, the level of information confidentiality, the type of entity issuing the NDA, and more.
Here, you can find the most common situations where the NDA can be used:
NDA Uses and Scopes
Protection of business and trade secrets: The NDA can be used by businesses that want to protect their business and trade secrets when interacting with their vendors, suppliers, business partners, and other third parties.
Protection of intellectual property: Used for protecting the software, inventions, creative work, and other types of intellectual property that third parties have access to during their interaction with the party issuing the NDA.
Protection of information during employment: Used by employers that want to protect the confidential information their employees get access to during their employment period. It is usually signed along with the employment agreement.
Protection of information after litigation: Parties can use the NDA to protect the details of their litigation settlement agreement.
Texas Non-Disclosure Agreement FAQ
Yes, the NDA is a legally binding document in Texas. It becomes legally binding once all the parties taking on the confidentiality obligation sign it.
The Texas NDA doesn’t need to be signed in front of a witness to be valid. However, the parties might consider including witness signatures if they want to provide additional authentication for the document.
You can always decline to sign the NDA in Texas. However, this action might have a potential negative impact on the relationship between you and the party issuing the NDA.