Even though a Non-Disclosure Agreement is a strong deterrent for disclosing confidential information to unauthorised parties, breaches can still happen.
If a recipient of confidential information breaches an NDA, the first step is often to send a Cease and Desist Letter. If that does not produce the desired result, the information provider may need to take legal action.
If a recipient has broken a Non-Disclosure Agreement and the misuse of the confidential information goes to the core of the information provider’s business or earning potential, damages are often an inadequate remedy.
Our NDA template outlines that a court injunction is an appropriate relief for a breach of the contract. When a court orders an injunction, it means the recipient must immediately cease any misuse of confidential information. Failing to obey a court order is contempt of court, which can result in fines or imprisonment.
However, legal actions are costly and time-consuming. Alternatives that may be applicable to resolve the dispute include one-on-one negotiation or mediation.