What Agreements Do I Need to Create to Hire a Contractor to Develop Software?
A business that wants to protect trade secrets, patents, inventions, sales territories, customer lists, and similar confidential business information often find it helpful and desirable to place the terms of the employer-employee relationship in a binding, written employment contract. Noncompete and confidentiality clauses may be used in an agreement with an independent contractor (please see links to forms below).
Confidentiality and non-disclosure agreements are used to impose confidentiality obligations on parties receiving information on materials from disclosing parties which consider such information or material to be confidential. The agreement may contain terms that prohibit the disclosure of confidential information and competition with your business. The employment of the individual is typically considered adequate consideration to make the contract enforceable. If another employer is aware of the agreement and intentionally seeks to interfere with its terms, it may be possible that that employer is liable for damages for intentional interference with a contract.
A court will generally enforce a non-compete agreement if it is reasonable in terms of the restrictions on the employee. It should be limited in time and distance that it covers, so that the employee isn't prevented from earning a living. The agreement may contain terms that prohibit the disclosure of confidential information and solicitation of other employees. The employment of the individual is considered adequate consideration to make the contract enforceable. If another employer is aware of the non-compete agreement and intentionally seeks to interfere with its terms, it may be possible that that employer is liable for damages for intentional interference with a contract.
Courts will enforce non-competition agreements if:
-the employer proves that it has a legitimate business interest to protect by restricting the right to compete against it;
-the restriction on the other party's right to compete is no greater than that necessary to protect the employer's business interest; and
-the covenant not to compete is supported by consideration, meaning that the other party received something in exchange for it.
A licensing agreement is a legal contract between two parties, known as the licensor and the licensee. In a typical licensing agreement, the licensor grants the licensee the right to produce and sell goods, apply a brand name or trademark, or use patented technology owned by the licensor. In exchange, the licensee usually submits to a series of conditions regarding the use of the licensor's property and agrees to make payments known as royalties.