These types of agreements can have many names, said Donna Ballman, an employment lawyer and author of the book “Stand Up For Yourself Without Getting Fired.” “Secrecy, silence, confidentiality – whatever you call it, it`s probably the same thing,” Ballman said. The statement cites employees` beliefs and perceptions, but not what the agreements actually say. The words seem to preserve a certain formal denial of the intended scope of the NDAs. However, contractual obligations are usually or are not. When we teach contract law to first-year law students, we relentlessly remind them that what matters is objective proof of commitment, not a party`s idiosyncratic subjective mindset. Silent money is when you pay someone to sign a non-disclosure agreement. An NDA is a type of legal contract that defines what one party can and cannot say about what it knows about the other party. Often, employers ask departing employees to sign an NDA for any internal information they may know. Startups and inventors can use these agreements to prevent them from revealing proprietary information, while researchers can use them among trial participants. Public figures can use them for domestic workers, including housekeepers and even babysitters. The term “silent money” is generally used to refer to an agreement in which one party pays another party not to disclose information detrimental to the first party. This can be something unethical or illegal, although in the latter case, the contract is almost certainly not legally enforceable.
In this context, the term has negative connotations that are not usually associated with an NDA. There is no longer any reason to doubt that Cohen committed a crime with these payments; He admitted it and was sentenced to three years in prison on 12 December. It is illegal to make contributions to a federal candidate – payments to influence an election – beyond certain limits, and Cohen`s payment was well above the individual limit of $2,700 per election. It`s also illegal for companies to make contributions to candidates, which covers reimbursement from Trump`s real estate company, as well as payments from AMI and Cohen`s shell company. After all, it`s illegal not to disclose campaign donations – which, of course, was the purpose of the silent money system. .