When Should You Consider Getting a Non Disclosure Agreement
The influx of social media outlets such as Facebook, Twitter and Instagram has allowed society to broadcast intimate aspects of their lives instantly and very publicly. This constant flow of information readily available at a moments notice can put your security and privacy at risk. Identity theft, Stolen ideas, fraud and blackmail are just a few the disastrous effects of having your information unprotected in the wrong hands. The risks are significantly higher if you are in the process of opening or expanding a business. At some point you will have to hire a person to handle confidential client files or manage travel arrangements using your personal information. Acquiring this type of knowledge can lead to damaging circumstances. That is when you step in to protect your company and require a Non Disclosure Agreement.
In order to understand how a Non Disclosure Agreement or NDA can protect you, you must first know what a NDA is. A Non Disclosure Agreement is a legal and binding contract between two or more parties that would like to disclose confidential information of any kind amongst each other without the risk of information being leaked to an outside party. NDAs are now becoming increasingly more important, which means it is important for you to find qualified solicitors to write yours. Taylor Rose create personalised legal documents online.
When a Non Disclosure Agreement is Appropriate
Specifically when in the beginning phases of a start-up business you would want to consider having Non Disclosure Agreements in place. Starting a business requires you to share your ideas in order to receive feedback, iterate and build products. Potential investors or prototype manufactures will be people you might want to have sign a NDA. Additionally if you acquire an assistant or have anyone privy to a lot of company details, they would be prime candidates to sign a NDA. Essentially whenever you plan to divulge proprietary information that has the potential for commercial value and has not yet became public domain; you’ll want a NDA.
Different Types of Non Disclosure Agreements
The outlining of a NDA is unique to every company or individual based upon the needs of the parties involved. NDAs are either classified as ‘one-way’ or ‘mutual.
Mutual Non Disclosure Agreements usually means that both parties are exchanging confidential information with each other such as patent ideas or sales strategies. This type of agreement requires all parties to protect the information entrusted with them according to the agreement.
One-Way Non Disclosure Agreements or Unilateral Non Disclosure Agreements come to play when only one party is sharing information that has to be protected. The receiver must guarantee that they will protect all information in the agreement. Many Personal Assistants are required to sign a Non Disclosure Agreement because of the sensitive information they gather on their clients.
Information Covered in a Non Disclosure Agreement
When drawing up a Non Disclosure Agreement you have to consider your needs and whether the nature of the NDA is business or personal. Most common NDAs will contain:
- The parties involved
- The reason for disclosure
- The range of information to be considered confidential
- What information is exempt from the agreement
- The circumstances when disclosure is acceptable
- The terms for the length of the agreement
- The return of all materials when relationship is ended.
- The repercussions for breaking the Non Disclosure Agreement
As with anything there are downsides to requiring a Non Disclosure Agreement. It adds an extra layer of bureaucracy and often many people will be reluctant to sign one, slowing down your progress. Ultimately, the decision comes down to the business owner.
About the Author
Taylor Rose offer online legal document creation for personal and business use. Find them on Twitter – @TaylorRoseLaw