An agreement between an employer (the principal) and an employee (the agent) to protect the employer's confidential information after termination is called?

• A. Noncompete agreement
• B. Promissory estoppel
• C. Gratuitous promise
• D. Usury

Answer: (A)

Protecting an employer’s confidential information after an employee leaves relies on post-termination restrictions. The option that best fits this context among the choices is a noncompete agreement, because it imposes limits on what the former employee can do after leaving, including preventing engagement in activities that could use or disclose confidential information in ways that compete with the employer. Although a noncompete is primarily about preventing competition, it is commonly used to curb post-employment misuse of sensitive data. The other choices don’t address post-termination protections: promissory estoppel is about enforcing reliance on promises, gratuitous promise lacks consideration, and usury concerns illegal charging of excessive interest.