NON-DISCLOSURE AGREEMENT (NDA)
A Non Disclosure Agreement, or an NDA, is a legally binding contract that establishes confidentiality between two parties; the owner of the protected information (the person sharing the information), and the recipient of the information (the person receiving the information).
Objective of An NDA
The purpose of an NDA is to ensure that the parties to this agreement agree to protect any confidential agreement that is shared between them, and to not divulge, release, or use the information in any way, without the consent of the other party.
The agreement will define “confidential information” to include the following:
- Proprietary information
- Trade secrets
- Details of contracts
- Financial information
- Personal/private information
- Customer/client information
The following will typically not qualify as “confidential information” protected under an NDA:
- Information in the public domain
- Information which the parties agree is not confidential in writing
- Information which has been shared following a party’s consent
- Information that has been lawfully received by a third party
Situations Requiring A Non-Disclosure Agreement
A Non-Disclosure Agreement template will be of most beneficial in the following circumstances:
- Where a business shares financial or other sensitive information with a prospective buyer of the business
- Where a business gives a prospective buyer access to a new product that has not yet been in the public domain
- Where a business gives a presentation of a new invention to a prospective partner or investor.
- Where a business receives some kind of services from a company who are then given access to sensitive information while rendering the services
- Where a business gives employees standard access to information required for the job, but that also contains sensitive and proprietary information.
Key Elements of a Non-Disclosure Agreement Template
- The identification of the parties to the agreement
- A clear definition of what constitutes “confidential” under the agreement
- The receiving party’s obligation of non-disclosure and the scope of that obligation
- The term of the Non-Disclosure Agreement.
Product ID: 23922AL22
⇒ Revisions Approved
⇒ Plain English & Easy Editing
⇒ Guidance Notes Included
⇒ Money Back Guarantee
⇒ Length: 4 pages (min.)
⇒ Last Revision: 10 July 2020
⇒ Format: MS Word (.DOCX)
⇒ Rev. Number: 13886646
⇒ Product ID: 23922AL22