Are trade secrets protected by contract law?

Yes, trade secrets are protected by contract law in Texas. According to the Texas Uniform Trade Secrets Act, a trade secret is defined as any formula, pattern, device, or compilation of information which is used in a business and has economic value from not being generally known or readily ascertainable by another person. When a business seeks to protect a trade secret, contract law is often used. A contract can limit the use of confidential information by setting out terms and conditions that both parties agree to. These clauses may dictate how the confidential information can be used and what restrictions are placed on those who use it. The contract may stipulate that information must remain confidential for a certain period of time or be returned or destroyed if it no longer needs to be used. This offers legal protection to both parties in the event of a breach. Texas courts will enforce contracts created to protect trade secrets, even in the absence of a non-disclosure agreement. If there is a breach of contract, the courts may issue an injunction to prevent further use of the confidential information or award monetary compensation to the injured party. Texas also recognizes the Texas Uniform Trade Secrets Act which provides additional protection for trade secrets. This act provides for restitution, damages, injunctive relief, and other remedies for victims of trade secret misappropriation. In essence, this act provides businesses with legal protection if their trade secrets are used without their permission.

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Are trade secrets protected by contract law?

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