To protect their ideas and interests on certain projects, most companies would like to make them confidential in the hopes that nobody could copy their plans. This is why they would insist on making non-disclosure agreements when working with other people outside of the company so that any and all information would remain safe from prying eyes and ears. This clause, if included in any work contract that is signed and notarized, is automatically deemed as binding and thus needed to be respected and heeded. If not, there will be dire consequences one must face in a court of law.
50+ Non-Disclosure Agreement Samples
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What Is a Non-Disclosure Agreement?
A non-disclosure agreement, also known as a confidentiality agreement, is a legally binding and enforceable contract agreement that prevents both parties from disclosing any confidential and sensitive information to people irrelevant to the subject of the contract. This is to ensure that the party’s interests are closely protected. An NDA may last depending on the timeline stipulated on the contract or if both parties have decided to end it. There are many penalties that one may be subjected to when they breach a confidentiality contract, such as loss of employment, monetary damages, and worst, a case in court.
How to Make a Non-Disclosure Agreement?
To make a non-disclosure agreement, you need not be a graduate of business school or law school, as with the right reference and materials, you can make one for yourself. Here are some steps which you can follow if you want to make a contract agreement with non-disclosure clauses.
1. Look For References
If you are not familiar with the format of a standard NDA contract, you can take a look first at the previous NDAs the company has had in its stash of legal documents. If the scope of the matter is still the same or might be related to the matter at hand you are handling, then you can use those references to write an effective NDA. If there aren’t, and we can then assume that you are a start-up business, then we suggest that you consult with an experienced legal professional or better yet, with a business consultant. That way, you would also know what both parties are entitled to and what should not be done or included in the NDA.
2. Be Specific and Accurate With Details
When you write the contents of your agreement, you should be specific and accurate with the information you want to write. This includes the names of the parties, the scope of confidentiality, obligations, exclusions, and other terms and conditions that you deem necessary. If you are not sure what to include, then ask your consultant about the things that you need to be incorporated into the agreement so as to not leave out any important details.
3. Set Out Penalties For Contract Breach
In the case that the other party has breached the agreement, what do you want to happen? Most people would bring the matter to court, especially if it involves multi-million investments. However, to avoid the long process of litigations and its cost, most people would only go for settlements and compensations. The penalty clause in your contract should be discussed by you and the other party first for mutual understanding and tacit agreement.
4. Review and Revise When Needed
Before signing the agreement, it is strongly suggested that you review the contents of the agreement. Check your spelling, grammar, as well as indentions, and spacing. Of course, it is best that both parties are present so that if there are any concerns, you can immediately change them in real time.
Why is there a need for non-disclosure agreements?
In the world of business where money, rights, and ideas are involved, protecting them is the utmost priority. Non-disclosure agreements do not only protect these elements, but it also lessens the chance of competition and stealing of ideas which is very common in the corporate world.
What is the use of an NDA in employment?
Companies make sure that no trade secrets and confidential information, such as the scope of work, technologies used, and salary should be disclosed to outsiders. This is to protect their interests as well as the business in general.
Can I be jailed when breaching an NDA?
Yes, you may possibly get jail time when you breach an NDA. Aside from getting imprisoned, you are also deemed to pay damages, such as monetary and moral, to the employers or business owners.
A non-disclosure agreement is a big help if you want to keep the secrets of your business away from competitors who wish to steal your ideas. If you want to write an NDA, we highly recommend that you get a template to save time and prepare it efficiently. Download our NDA today by visiting our website and clicking on the available samples in this article.
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