Texas Non-Disclosure Agreement Form

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Texas Non-Disclosure Agreement: What Is It?

A Texas non-disclosure agreement is also known as a confidentiality agreement. The purpose of a Texas non-disclosure agreement is to protect business secrets and trade secrets. Although many people attempt to list a perpetual time limit for trade secrets in a Texas non-disclosure, it's important to note that Texas contract law says if a contract has that sort of provision, it can be terminated at will.

Texas State Laws

The Texas Trade Secrets Act, Tex. Bus. & Com. Code §§ 134A.001 through 134A.008, regulates the use of non-disclosure agreements. It’s imperative that a business understand the roles and obligations for each party of the agreement as well as the limitations of the document.

Definition of “Trade Secrets”

Of course, the purpose of a Texas non-disclosure agreement is to protect trade secrets. Under the Texas Trade Secrets Act, a “trade secret” is defined as any form or type of information. This includes business, scientific, technical, economic, or engineering information. It also includes any sort of formula, design, prototype, pattern, plan, compilation, program device, program, code, device, method, technique, process, procedure, financial data, or a list of actual or potential customers or suppliers. This information may be held in tangible or intangible form. It does not matter how the information is stored, complied, or otherwise memorialized. The information must have some sort of actual or potential monetary value. This value comes because the information isn’t generally known by others, regardless of whether “others” means the public or other businesses. It isn’t information that another company may determine by their own development techniques. It is something that truly is unique to the business. The company wishing to protect the information must take reasonable measures to keep the information secret.


The Texas Trade Secrets Act is every informative. It sets limitations. For example, a Texas non-disclosure agreement cannot have an unlimited time frame. If it does, the document can be terminated by either party at any time.

Companies face an increasing amount of competition. Providing the best possible protection for business secrets is important. Businesses should use the form along with a Texas noncompete agreement.

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