A New Jersey Non-Disclosure Agreement (NDA) is a vital legal instrument safeguarding sensitive information between parties. Also referred to as an NDA, it assures the protection of trade secrets and confidential data. In case of a breach, the responsible party may be held financially liable.
New Jersey NDA Laws Overview
- Governing Law: NJ Rev Stat § 56:15-2.
- Statute of Limitation (§ 56:15-8): The plaintiff has three years to sue the defendant once misappropriation is discovered.
- Trade Secret Definition (§ 56:15-2):
“Trade secret” means information, held by one or more people, without regard to form, including a formula, pattern, business data compilation, program, device, method, technique, design, diagram, drawing, invention, plan, procedure, prototype or process, that:
(1) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Are NDAs Enforceable in New Jersey?
Yes. NDAs are enforceable in New Jersey when they are reasonable and specifically tailored to protect legitimate business interests. The agreement must clearly define what constitutes confidential information and must not impose overly broad restrictions on the receiving party. New Jersey courts generally uphold NDAs unless they are deemed excessive or unfair.
