In business life a person might be in a situation to share surreptitious matters with other parties or persons which demand to be kept confidential. A non disclosure agreement is constructed at this point for the sake of secrecy. Non disclosure agreement is a legal document in which one party consents to provide confidential information about their business or products to other party and second party assures not to disclose this information to anyone for the specified time period. Technology companies mostly bring into play Non-disclosure Agreement while producing products in joint ventures. When a company seeks venture resources from potential financial supporters an NDA is used as a way to make sure that proprietary clandestine or ideas are not stolen or seeped out to someone else by the potential sponsors. Mostly this agreement is signed by both parties but sometimes by single party such as only by an employee being bound not to disclose any information about company or employer.
Non-Disclosure Agreement Template
Here is preview of this Non-Disclosure Agreement Template,
Typically this agreement needs to be signed by receiving party to maintain the confidence of received information provided by disclosing party. A non-disclosure agreement should include these points to make it more secure and effective.
- Parties included in agreement must be outlined clearly in respect of provider and receiver.
- The information to be maintained confidential must be described obviously whether it is unpublished patent applications, know-how, schema, financial information, verbal representations, customer lists, vendor lists, business practices/strategies, etc.,
- Time period for which information should be kept confidential must also be declared.
- Exclusion from what must be maintained confidential. Characteristically the constraint on revelation of information or use of confidential data will become invalid if
- The beneficiary had earlier knowledge of the materials;
- The beneficiary gained succeeding knowledge of the materials from another source;
- The resources or information are generally available to the public; or
The obligations of receiver concerning the confidential data include the following obligations.
- To bring into play the information only for enumerated objectives;
- To divulge it only to personnel which require to know the information for those purposes;
- To use suitable endeavors (not less than reasonable efforts) to keep the information protected. Reasonable efforts is often distinct as a standard of care linking to confidential information that is no less meticulous than that which the recipient uses to keep its own parallel information locked;
- To guarantee that any person to whom the information is unveiled further put up with obligations put a ceiling on use, restricting disclosure, and making sure security at least as shielding as the agreement;
- Types of allowable disclosure – such as those obliged by law or court order (many NDAs require the receiving party to give the disclosing party without delay notice of any efforts to acquire such disclosure, and possibly to cooperate with any attempt by the disclosing party to inquire about legal protection for the relevant confidential information).
- The law and jurisdiction governing the parties. The parties may choose exclusive jurisdiction of a court of a country.
NDA (None Disclosure Agreement) is a legal document to prevent the important or patent information being leaked. It’s a legal contract between two or more parties for the safety of confidential products or ideas. Through NDA companies create confidential relations to share confidential data with partners secretly. When you sign a Non-Disclosure Agreement (NDA) you become legally bound you in a contract. This facilitates you of sharing your business ideas with your partners or desired persons keeping them bound not to disclose it to anyone else. Here is a comprehensive Sample NDA (Non-Disclosure Agreement) Template that can help anyone in creating a professional NDA for his own purposes.
There are different situations where NDA is being signed, some are as follows.
- If you are working as free lancer for a company you may be invited to sign Non-Disclosure Agreement (NDA) by the company for keeping secure company’s data or information. It bounds you for not exposing company’s secrets under settled conditions.
- In case of inventions, inventor can recommend a Non-Disclosure Agreement (NDA) to be signed for the secrecy purpose. Terms and conditions can be defined to disclose the information in contract.
- Some companies bound their regular employees by signing Non-Disclosure Agreement (NDA) to keep them secure from leakage of their new product ideas or any important information.
- To be in a secure position while keeping your business or trade secrets safe from any kind of revelation Non-Disclosure Agreement (NDA) is a good deal. It provides you a better legal position in case of any disclosure and you will be able to bring the matter in court and get compensation for it.
- To keep your patent ideas safe from any misuse by suspected persons making them bound through Non-Disclosure Agreement (NDA) is a good and safer approach.
- To retain the confidential matters secret you are in need of creation of Non-Disclosure Agreement (NDA). It could be single party or mutual agreement. In case of mutual agreement both parties are equally responsible to keep the defined information disclosed to irrelevant persons or entities.
- Non-Disclosure Agreement (NDA) may be needed when two or more entities are going to start a new business or companies decide to start joint venture with other company. This agreement must include the proper definition of what is confidential, term in years and conditions under which this disclosure will not be illegal.
Here is preview of this Sample NDA for your quick assistance.
Non-Disclosure Agreement (NDA) provides benefit to retain the secrecy of your important issues and make available an opportunity to be compensated in case of any misuse or disclosure that can harm your business or personal concern. It offers you legal assistance in case of any breaching of agreement by other party. Being considered its importance it should be prepared by professional attorney so that you can get all related benefits associated with it. Non-Disclosure Agreement (NDA) can be utilized in many other situations other than mentioned above for instance any kind of social or personal secret whose exposure to public can harm your fame, good will or property can be secured through it.
Here is download link for this Sample NDA,