Legal Question in Business Law in California
NDA and Non-Compete Agreement
I tried to work with people located at New Orleans, LA to co-develop online startup business about 2-3 months. Originally I expressed to interested in his concept, then communicated through email. I even suggested for confidential agreement before he released very primitive executive summary. He hadn't failed to send the confidential agreement to me before he sent executive summary. I found that there are tremendous jobs in order to transfer the pure theoretical concept into viable business project, so I asked for my position and compensation because I can't risk my time and efforts like this. He can't offer anything what I want, no equity, no cash, no specific position. So I decide to withdraw myself from the project.
He failed to ask me to sign any confidential agreement before released the primitive executive summary, whether I still need to sign some non-disclosure agreement with him after I made my claim to not work together ? Sign the confidential agreement or non-disclosure agreement is my obligation or not ? He even asked to assign for non-compete agreement even I don't want to work with him anymore.
Hope to listen experts like you.
Thanks in advance,
3 Answers from Attorneys
Re: NDA and Non-Compete Agreement
A piece of paper is not the actual contract but is instead very strong evidence of what the terms of the contact say. The contract itself is the agreement two or more parties reach (assuming that it contains all of the elements of a contract).
It isn't clear from your question whether the two of you actually agreed that you would respect his confidentiality, but if he shared his secrets with you after agreed not to disclose them (or after you did something which reasonable people would understand as such an agreement) then he can hold you to that agreement regardless of whether you signed a document. He will have a harder time proving his case than if he had your signature and he might even lose, but this does not give you the right to exploit his ideas if he only shared them with you after you promised him confidentiality.
Re: NDA and Non-Compete Agreement
Based on CA law and the facts as described, (please note that a complete review would be necessary for a more certain answer).
From what I can surmise from your question, it sounds as though everything was presented to you prior to your signing the agreement, you can not be held to it.
However, there may exist an implied agreement as you were aware of the other parties request for a Non-Compete. This would probably not hold up in a court of law very well.
Is there a specific reason that you do not want to sign one now? Sometimes it is better to pick the right battles rather than fight them all.
If you feel you require additional assistance, I can be reached at 626-578-0708. You can also review some additional material about Non-Compete Agreements on our firm's website www.RulesofEmployment.com
Re: NDA and Non-Compete Agreement
I wrote an article on non-compete agreements. It can be found at this link: http://www.legalwarriors.com/new_page_5.htm
I would be very reluctant to sign any agreement once the relationship has essentially dissolved and you are moving on to a new situation.
I would be happy to discuss this with you. You can set up an appointment to chat online by going to my website or the link above.
J. Caleb Donner
DONNER & DONNER
LEGAL WARRRIORS�
325 E. Hillcrest Drive, Suite 242
Thousand Oaks, CA 91360
Tel: 805-494-6557
Fax: 805-494-0990
email: [email protected]
website: www.legalwarriors.com
DISCLAIMER
This reply constitutes legal information for education purposes and does NOT constitute legal advice nor establish an attorney-client relationship. We will only represent you based on a written retainer agreement. Therefore, you should contact this office to discuss representation if you do want legal advice/representation.
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