What is the difference between a non-compete agreement and a non-disclosure agreement?

Answer 1

In the Merger & Acquisition world, there are terms very much used in contracts.
In essence, non-compete means that the owner of a business being divested will not enter that same line of business or product line after he sells the company.
Non-disclosure is just a clause or a contract restricting the parties involved on what's public information and what should be kept confidential.

Answer 2

A 'non disclosure' contract AKA confidentiality contract AKA private disclosure contract AKA proprietary tips contract is a settlement between the two one among you, that keeps one or the two events from liberating the tips it relatively is interior the contract. A non-compete is an contract the place one (normally an worker) is of a similar opinion to no longer pursue an analogous occupation or commerce in opposition with you. you choose no non compete right here. If the cyber web internet site clothier has been interior the business corporation for long, they are going to be acquainted with a NDA. The NDA could properly be laid out so as that it includes that no longer purely will they no longer show, yet that they are in a position to on no account USE the tips interior the contract. i do no longer see a internet site clothier agreeing to something so restricting because of the fact the non compete. i might spend the money and allow an lawyer draw up the NDA. A mistake must be disasterous.

Answer 3

A non-compete agreement is usually between an employee and a company that you will not enter a competitive market against them after you leave, usually for some specific period of time like a year. A non-disclosure agreement is generally between companies that are thinking about working together and 1 company will be disclosing confidential information to you in order to see if it will be of benefit to your business relationship, but in order for them to do that they don't want you to expose this same information to the market or competitors so you sign the non-disclosure agreement which says you willl not reveal what you have learned about their technology, marketing plans or roadmaps, etc. In your case, specific details may vary, but I think that covers the basics.

Answer 4

There's a HUGE difference! A non-competition agreement keeps you from setting up another similar business in the area for a specified period of time. A non-disclosure agreement keeps you from giving information to others; trade secrets and the like.

Answer 5

It sounds like you are buying or selling a business...

The non-compete means you won't set up shop doing the same thing within so many miles for so many years if the sale goes through.

The non-disclosure means you will not reveal any of the details of the offer before the sale is final or ever (depending on the wording of the terms in the document).

Answer 6

When I used to work in the insurance industry, our standard non-compete simply stated that if a sales rep left the company he could not solicit the company's exisiting client base for a specific period of time.

A non-disclosure, was simply not sharing client information. Fpr example you clouldn't share the client base with a competitor.

Answer 7

non complete means that you are not going to start a business in competition then
non disclosure means that you wont even tell anyone about what a business does!