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).

• • 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.

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