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Is Returning The Money Enough To Rescind An NDA?

04.02.18

Evan Gibbs

Associate Evan Gibbs’ latest column for Above the Law explores the question, “Is Returning The Money Enough To Rescind An NDA?” Gibbs writes about the case of Stormy Daniels, who claims to have had an affair with President Trump in 2006 and 2007. Daniels is reported to have signed a non-disclosure agreement (NDA) about the affair just days before the election, after allegedly being paid $130,000 from President Trump’s personal attorney. Daniels has filed a lawsuit against Present Trump and others to have the NDA declared invalid and publicly offered to repay the $130,000. Gibbs writes, “simply repaying the money is not enough to be released from one’s obligations under a typical NDA or settlement agreement [and] Courts will only invalidate an NDA or settlement agreement for certain reasons.” He goes on to list the grounds for invalidation and concludes, writing, “While it remains unclear how the Stormy Daniels case will shake out, it has provided a great lesson to anyone who has entered into or may in the future consider entering into an NDA or settlement agreement: A change of heart and a return of the proceeds will not be enough to get out of one’s obligations under such an agreement.”
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