A non-disclosure agreement (NDA) is also known as a confidentiality agreement which is a legal contract between you and another party preventing them from sharing your information or invention with others.
To be able to share new knowledge and original work requires a lot of trust. It is essential to consider confidentiality before seeking a company to develop your ideas.
A Non-Disclosure Agreement (NDA) is a low cost way to protect your business.
When you and another party sign a NDA it’s an agreement that allows you to openly talk about the idea or the invention you have without them disclosing the invention to anyone else.
So, you have an idea, an invention, of a new product and you need to get it manufactured. Before you send the manufacture any details of your product or idea, have them sign a NDA.
1. NDA’s for Employees
When leaving a company, an employee may have the opportunity to share trade secrets of your company or specific to your industry. The best way to help prevent this is through the use of a NDA that specifies confidential topics, practices, etc.
2. Precedent Confidentiality Agreement
This NDA is primarily used for mergers and acquisitions when a company wants to look into your books and assets.
3. Commercial Relationship
An NDA is utilized to ensure that confidential information will not be later disclosed.
4. One-way and Two-way NDAs
One-way NDA is used when one party is only sharing information with another party.
Two-way NDA is when both parties are sharing information and neither will disclose the information.
Templates can be purchased off-the-shelf that allow you to adjust them to better reflect your news. Law Depot is an online self-service website that allows you to customise your own NDA.
Key Terms of a Non-Disclosure Agreement
Here is a list of key terms used in NDAs:
The NDA is a binding contract that allows parties to share information. If a party breaks the contract and leaks information, the party can then be taken to court for damages. You can, however, get an injunction from a business partner if you feel that he is about to breach the agreement. This is also a good reason to get a Patent Pending application.