What are Non Compete Agreements and Non Disclosure Agreements?

If you are like most businesses selling special information or a process, service or product that has secrets associated with them, a non-compete or nondisclosure clause within an agreement can make a lot of difference in your business contract. Contract lawyers relay heavily on these clauses to prevent theft of trade secrets, be they processes, information, product features or developmental data.

Understanding the difference between a non-compete vs. a non-disclosure clause can help you make proper use of these important secrecy protection devices.

Of course, neither clause is of much use unless your trading partner, vendor, or customer do not sign an agreement containing these clauses. Doing so could save your viability as a business. Without ensuring that others involved in your business practice will not go out and compete or disclose you trade secrets, your business is at risk of failure from the theft of your proprietary information or product.

There is a simple fix to this. Hiring an experienced business transactional attorney can help you draft contract agreements at affordable low cost rates. This will protect your business long-term.


Anyone with a successful business knows that it was not easy establishing the business and making it a success. Having an employee come into the business for a brief period of time and learning how you make a profit could enable them to go down the street and open a competing shop as your next competitor.

Do not let your employees steal your ideas and the secrets that have made you successful. As a business attorney in Falls Church, Virginia, The Strong Law Firm has helped many business owners protect themselves and their livelihood by obtaining enforceable non-compete contracts from key employees. Most courts impose reasonable restrictions on the time, distance, and type of activity that can be restricted by a non-compete agreement.

Do not allow anyone to convince you that an attorney is expensive and unnecessary. A good commercial attorney will help your business thrive and succeed. It is always more affordable to hire an attorney on the front end rather than having to litigate a contractual dispute on the backend. What a non-compete clause does in a contract is to forbid a vendor, employee, or customer from going out and starting a business that is directly competitive against yours within your existing market. This can be a lifesaver for business owners who have worked hard to create a viable business model.


A nondisclosure clause forbids a person from disclosing or telling certain details to anyone. This can become very important if you are working on developing a product, a business model, or some other trade secret that would be associated with your business’s viability or profitability. As an experienced business attorney I have heard of many companies that have failed to make sure that their trade secrets were protected from disclosure by employees. You do not want another company to come along and buy up an employee to squeal out valuable information about your company’s projects.

The second most frequent non-disclosure agreement is used when you are trying to sell a large product or selling your entire business. In order for a buyer to “kick the tires” and complete the necessary due diligence analysis of your business to arrive at a fair purchase value, the seller has to make certain disclosures of key data, such as financial histories, trade secrets, proprietary processes, and other key information. Using a non-disclosure agreement will allow you some protection when the buyer obtains this data, to prevent its disclosure to outsiders and competitors.

At the Strong Law Firm We can help you with an array of business needs. From contract review to straight business advice we will help your business succeed. We can help you from formation all the way to selling your business to a new owner. We have developed a reputation of taking businesses to the next level by protecting them against potential future litigation. If you are a business owner and are in need of advice give our office a call today. We would love to help your business thrive.