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Non-compete agreements
and
Non-disclosure agreements
are often confused as being one and the same.
But these 2 legal agreements are very distinctive
agreements, serving two different purposes.
The non-compete agreement
A one-way agreement in which one party (the Recipient) agrees not to
compete against the other (...
The non-disclosure agreement
This type of legal agreement simply limits or restricts an independent
contractor, employee, ...
Differences between
non-compete and non-disclosure
1. Their function
One agreement protects a business from unfair competition while the
other agreement protects its trade s...
2. One-way / mutual
Another distinct difference is in the fact that non-competes are gener-
ally a one-way contract, while ...
For example, when two companies form a joint venture to work on a
specific project, both are likely to be disclosing privat...
Non-compete vs. Non-disclosure
Non-compete vs. Non-disclosure
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Non-compete vs. Non-disclosure

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There's a big difference between a "Non-compete Agreement" and a "Non-disclosure Agreement."

This presentation outlines the differences between these 2 type of legal agreements.

Published in: Law
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Non-compete vs. Non-disclosure

  1. 1. Non-compete agreements and Non-disclosure agreements are often confused as being one and the same.
  2. 2. But these 2 legal agreements are very distinctive agreements, serving two different purposes.
  3. 3. The non-compete agreement A one-way agreement in which one party (the Recipient) agrees not to compete against the other (the Disclosing Party): - In a specific line of business - In a certain geographic area - For a specific period of time
  4. 4. The non-disclosure agreement This type of legal agreement simply limits or restricts an independent contractor, employee, business partner or potential affiliate from dis- closing confidential information such as trade secrets, documents etc.
  5. 5. Differences between non-compete and non-disclosure
  6. 6. 1. Their function One agreement protects a business from unfair competition while the other agreement protects its trade secrets and confidential informa- tion. Both agreements are designed to protect business interests, but cover two distinct topics of importance.
  7. 7. 2. One-way / mutual Another distinct difference is in the fact that non-competes are gener- ally a one-way contract, while non-disclosures, on the other hand, can often be mutual.
  8. 8. For example, when two companies form a joint venture to work on a specific project, both are likely to be disclosing private and confiden- tial information to the other, so an non-disclosure agreement will specify what information, from each party, is to remain confidential. A non-compete agreement is just a one-way agreement that’s de- signed to prevent a business from unfair competition from a former employee or contractor, while the non-disclosure agreement is often (but not always) a mutual agreement that’s designed to protect pri- vate and confidential information from being disclosed to competitors and the public-at-large.

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