The Utah non-disclosure agreement (NDA), or confidential disclosure agreement, is a legal document signed between two or more parties with the goal of protecting certain confidential information (i.e., a trade secret) from unauthorized sharing with the public.
What is a Trade Secret in Utah?
A trade secret in Utah is confidential information about the operation and structure of a certain business entity that is considered to be their competitive advantage on the market and is, for that reason, kept confidential.
Types of Non-Disclosure Agreements
The two main types of non-disclosure agreement forms are mutual and unilateral NDAs. The difference between these two types is which party takes on the responsibility of keeping the exchanged information confidential.
The unilateral NDA forms an obligation only for the party signing the document, while the mutual NDA forms an obligation for all the parties within the agreement.
Legal Requirements for Utah Non-Disclosure Agreement
In this section, you can find the legal requirements regulating the Utah non-disclosure agreement template:
What Can a Non-Disclosure Agreement Be Used For in Utah?
The Utah non-disclosure agreement can be used in different situations depending on the type of information the parties want to protect, the level of confidentiality, the person who signs the NDA, and more.
With that being said, this section will outline the most common reasons parties decide to use the NDA:
NDA Uses and Scopes
Protection of confidential business information: Business entities often use the NDA to protect the confidential information they share when interacting with their business partners, vendors, suppliers, and other third parties.
Protection of information during employment: The employers will use the NDA to protect the information their employees get access to during employment. Therefore, the NDA is often signed along with the employment agreement.
Protection of information during mergers and acquisitions: The NDA can also be used by the parties that want to protect the sensitive information shared during the mergers and acquisitions process.
Protection of intellectual property: Used for protecting software, creative work, inventions, and other types of intellectual property before they get formal protection from the intellectual property law.
Utah Non-Disclosure Agreement FAQ
Yes, the NDA is a legally binding document in Utah. It becomes legally binding the moment all the parties that take on the confidentiality obligation sign it.
No, the NDA doesn’t need to be signed in front of a witness in Utah. If the parties want to provide an additional level of authentication for the document, they are always free to include the witness signatures.
Yes, you can decline to sign the NDA in Utah. However, you should consider all the aspects of this action, especially the possibility of affecting the relationship between you and the party issuing the NDA.