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Edward T. Fan

The Duty of Confidence

A duty of confidence arises when a person acquires knowledge of confidential information, including trade secrets, under circumstances in which the person has notice or agreed that the information is confidential. A duty of confidence can exist beyond the traditional categories of contractual obligation, fiduciary duty or relationship between the parties and is based on elements of trust and reasonable expectations. The courts have considered an action for breach of confidence to be sui generis, with roots in contract, equity and property law.