Non-disclosure Agreements (NDAs) establish a confidential relationship between parties who share sensitive information. A well-drafted NDA can protect sensitive information from being shared with others without your consent. Without NDAs, any information shared can be taken advantage of or publicly disclosed.
Following are some tips when creating and/or signing an NDA to ensure that you protect your best interests:
Q: What is the Scope of Confidentiality?
Make sure the purpose of the agreement is clearly understood and defined. Consider what the permitted use of information is and how long you are expected to keep it secret. Otherwise, the other party could use your information for their own benefit, or you could be expected to keep the information private for years, etc.
Q: What is the Definition of Confidentiality?
It is important to specify the kinds of information you want to protect or exclude from protection under this agreement, and make sure to include that in your definition of confidentiality. If you don’t get specific, your discussions may not be legally protected or you may risk accidentally breaching the agreement.
Q: What Happens if There is a Breach of the Agreement?
Pay attention to the consequences of breaching the agreement and avoid any extreme penalties, such as liquidated damages or indemnities. Otherwise you may be facing an expensive legal bill.
Being informed empowers you to make smarter legal decisions now and in the future.
Review your next NDA agreement with authorDOCS. Try out the Confidentiality Skillset to find core issues quickly when protecting your confidential information, and further your understanding and obligations of confidentiality.