There are instances when it is necessary in the line of work and responsibilities of an employee to know certain confidential information. It is not uncommon for employers to have the need to share confidential information and trade secrets with their employees, but in this case, they need to be able to maintain the confidentiality and secrecy of this information. That is what Non-Disclosure Agreement Forms are for. Such forms allow both parties entering it, an employer and an employee, to have a confidential relationship. They can share confidential information with each other, but not to the general public.

Sample Non-Disclosure Agreement

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Basic Non-Disclosure Agreement

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Standard Non-Disclosure Agreement Form

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Free Non-Disclosure Agreement

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Mutual Non-Disclosure Agreement

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Essential Parts of a Non-Disclosure Agreement

  • Identification of the parties involved: If it is a one-sided agreement, the provider of the information is the disclosing party and the one who receives it is the recipient. If there is a partner, an agent, or a third party company that the recipient is expected to share the information with, then they should be included in the agreement as well.
  • Definition of what information is considered confidential: The definition has to be both broad and specific. This will be hard to define, but it is important that the defined confidential information is broad enough to cover everything and not leave a loophole for the recipient, and also be specific enough for the recipient to understand what he can and cannot share.
  • Scope of the recipient’s responsibilities to maintain confidentiality: The things that the recipient has to do or not do to maintain the secrecy of the information have to be specified in Non Disclosure Agreement Forms as well.
  • Exclusions to the obligations of the recipient: This is used for instances wherein maintaining the secrecy of the information is going to be too unfair or tedious for the recipient. An example is if the recipient is forced by a court order to disclose the information in a court proceeding. This can be done without a breach of the Non-Disclosure Agreement as long as the recipient informs the disclosing party beforehand.
  • Terms of the Agreement: The length of the agreement has to be defined as well. This can vary from two to five years, depending on what industry the company is in.

Employee Non-Disclosure Agreement

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Non-Disclosure Agreement Format

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Non-Disclosure Agreement in PDF

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Non-Disclosure and Confidentiality Agreement

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Standard Non-Disclosure/Non-Compete Agreement

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Purpose of a Non-Disclosure Agreement

  • It prevents the recipient from sharing the information to the general public. Leaked information can really hurt the profitability of a company. For example, if information on a new project is leaked, it can undermine the value of the project and of the company as a whole.
  • It prevents the recipient from using sensitive information for his own personal gain. This is applicable when disclosing confidential information to investors, because there is a risk that instead of investing in your company, they will steal your idea and execute it themselves.

A properly signed and well-drafted Non-Disclosure Agreement Form can protect a company from any loss as a result of leaked information. Companies always want to stay one step ahead of their competition, and having a Non-Disclosure Agreement helps them ensure that. You may also see our Non-Disclosure Agreement Sample Forms for more samples and information.

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