The Nondisclosure (NDA) Agreement
The Nondisclosure (NDA) Agreement
A Non-disclosure agreement (NDA) will ensure that the party you will be working with on a project with will keep your confidential information secret. The parties agree to protect ideas about a project before actually entering into a formal contract for the services.
So, say you’re a graphic designer. It wouldn’t be fair (or at least not wise) for a client to hire you, but refuse to tell you anything about what they need for an upcoming project, citing that it’s a secret, right? An NDA will provide a bridge between their want for secrecy and your need for pertinent information.
Anytime you’re hiring a service provider to help transform your idea into reality (i.e., a product), you want to protect your ideas upfront.
An NDA prevents the other party from sharing that idea or swiping it for themselves. An NDA will ensure that your potential collaborator or hire is legally required not to share your idea, or face a hefty financial penalty if they do.
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Who is entering into the agreement and the purpose of the agreement
What information is confidential and what the receiving party may or may not do with that confidential information
Statement that the parties of the agreement understand that sharing of confidential information will cause irreparable harm and loss to the disclosing party
When the confidential information may be shared to the public
Who will be responsible and liable for any breach of the agreement by sharing the confidential information
What is and is not allowed around public statements, announcements or release to publications
In the event of a breech of the agreement, what the non-breeching party is entitled to in terms of equitable relief
Who may terminate the agreement and how and what is and is not allowed around sharing of confidential information after the agreement is terminated
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This agreement is vital for any business owner who is entering into talks with an outside third party regarding something confidential.
This agreement is intended to be used between two businesses who are exploring the possibility of working together in the future.
If you must disclose private/confidential information to the other party in order to explore working together, but want to ensure that third party does not share that information with others, this agreement is perfect for you.
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How is this document different than the Confidentiality Provision? Simply put, the NDA is designed for use in the pre-launch phase, while The Confidentiality Provision is designed to be an add-on to your existing contract to strengthen the confidentiality of your business's information.
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