In a world of trade and commerce, any businessman knows that business requires interaction between customers, partners, shareholders, and suppliers. Sometimes, the extent of interaction requires an organization or an individual to divulge sensitive or confidential information that needs to be protected.
One way to guarantee the confidentiality of information and secrets of trade is by constructing a Non-Disclosure Agreement, or an NDA. NDAs are contracts that take away the liberty of another party to disclose pertinent information that may be confidential or may play a big role in the trade of the business. Our Sample Agreement Forms below will help you generate the Non-Disclosure Agreement that you need for your business operation and security.
Non-Disclosure Agreement Forms or Confidentiality Agreement Forms may sometimes not be needed anymore since some organizations provide a confidentiality clause in their Agreement Forms. However, Non-Disclosure Agreements may also be constructed as a totally different contract.
Since business negotiations vary in every way, NDAs are also structured in different forms depending on their use and the number of parties involved.
A one-way NDA is a unilateral non-disclosure agreement that is utilized when only one organization or party has the ability to expose confidential information.
A two-way NDA, also known as a Bilateral Non-Disclosure Agreement, is created when both parties are at risk of having confidential information divulged. Two-way NDAs are commonly used in mergers or partnerships.
However, in some instances, some business owners or organizations will require a two-way NDA anticipating the fact that confidential information will later on be shared between both parties to continue with business.
A Multilateral NDA helps to protect everyone’s interest when there are three or more parties involved.
Anything that is used in business and sets it apart from others or has an independent economic value from being kept from the public is what is considered to be a secret of a trade.
Trade secrets can be anything from recipes, documents or material, inventions, or even a list of client information.
What’s in an NDA?
First of all, your Non-Disclosure Agreement should contain the name or a list of names of individuals expected to come in contact with the confidential piece of information.
The Non-Disclosure Agreement should outline the type of confidential material involved along with explicit mention of the information’s sensitivity.
An NDA may also include a consent clause that will render the agreement null and void in the event the information is required by law to be disclosed as in a judicial process.
What Happens When You Violate an NDA?
Non-Disclosure Agreements are legally binding, thus an entity or individual who violates a Non-Disclosure Agreement could be sued for damages. Damages are typically estimated depending on the severity of harm done to the non-breaching party.
A Non-Disclosure Agreement plays an important role in the business industry and serves as a security blanket for both small and big business owners.
Our Sample Non Disclosure Agreement Forms come with quick and easy access, are downloadable for you to customize and print, and are tailored to fit your various NDA needs.