What is Non-Disparagement? Plain English Explanation
Definition
A non-disparagement clause prevents you from making negative statements about the other party, their products, services, or employees. It restricts your freedom to publicly criticize the company or individual.
Why It Matters in Contracts
Non-disparagement clauses can prevent you from writing honest reviews, warning others about bad experiences, or even discussing legitimate grievances. If one-sided, they silence you while the other party can say whatever they want.
Real-World Example
An employee signs a severance agreement with a non-disparagement clause. The company later gives them a bad reference, but the employee cannot publicly respond or share their side of the story without risking legal action.
What to Watch For
- 🔴One-sided clause (only you are restricted, not them)
- 🔴Overly broad definition of "disparagement" that covers truthful statements
- 🔴High liquidated damages for violations
- 🔴No exception for legally required disclosures or truthful statements
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Disclaimer: This glossary entry is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.