A non-disclosure agreement (NDA) is a common business law tool. These agreements are typically used when businesses or people want to share sensitive materials. The NDA is completed and signed by the people or company with whom you are sharing secrets. NDAs are often referred to as secrecy agreements or confidentiality agreements. An NDA can be mutual which means both parties agree to keep information confidential. The NDA is often only one-sided as well. One party agrees not to share the other party’s information.
What does an NDA mean? Often, when two parties are going work together on a project or joint business venture, it’s essential that they protect one another’s privacy. For example, if one company is seeking a patent on a product or process, they will need to closely guard this information to protect their future profits and the ability to obtain a patent.
An NDA can have a wide variety of stipulations, depending on the situation. An NDA must be carefully drafted to protect all the parties involved. This is why it is important to work with a business law expert when creating an NDA. If it is not written carefully, it may not protect your interests. In some cases, the NDA may not hold up in court if it does not have the right information.
A business law attorney will help you understand the terms that you need to include in your NDA. You will need to specific a time period of confidentiality. The NDA should specify how the recipient can use the information you provide. For example, your business law attorney may advise you to list or enumerate the purposes for which the information can be used. You may also add situations under which the information can be disclosed.
Your business law attorney will help you carefully identify what information is confidential and protected by the NDA. This may include information on customers, financial information, vendor lists and your company’s business practices. A well-written NDA will protect you over the long-term so it’s important to do it correctly. Another reason to work with a business law professional is that NDAs are often constructed along with other important documents like ownership documents and all documents should be in harmony.