A “non-disclosure agreement'' or “NDA” is an agreement where the concerning parties agrees to not share or disclose confidential information to anyone outside the engagement.
This is done to secure the privacy of the business ensuring that all information is shared only with trusted people and/or those entitled to the information.
No one outside the agreement would have any knowledge of what's happening within the engagement.
Business leaders or people who are about to work together as a single entity sign a non-disclosure agreement binding them and preventing information leaks.
Non-disclosure agreements could be between two parties working together or between an employee and the employer.
In either case, the sole intent here is to restrict information sharing with third-party parties.
What Are The Types Of A Non-Disclosure Agreement?
Having said what a non-disclosure agreement is, the next thing to learn is the different types.
Depending upon which party owes the liability to contain the information, a non-disclosure agreement can be of three types:
The first kind is one where one of the two parties share confidential information with the other, under the influence that anything said or discussed would stay within the two.
As the name suggests, bilateral NDA is one where both of the concerned parties share vital information and pledge to keep all a secret.
In other words, both parties agree that the information wouldn't be disclosed to anyone except them.
This type of contract is the one where two or more parties are entering into an agreement, with at least one of them sharing information with others, where all must adhere to the agreement and not disseminate the information to anyone outside the agreement.
Why Do You Need A Non-Disclosure Agreement?
As trivial as it may sound, a non-disclosure agreement is something that preserves the authenticity and the viability of a business.
It is not only about restricting the process of information sharing but a means to ensure that company secrets, strategies, and manner of operation are kept internally. .
It safeguards company policies and also lays out the foundation of legal action in case any of the signers break the agreement and leak any information.
Without the above, companies have no standing when their confidential information is shared with their competitors or any other third-parties.
One thing to note is that the key lies in how you draft the agreement. Here are the two ways/tips to drafting a non-disclosure agreement that helps protect your business.
Define Confidential As A Term And The Scope Of It
When drafting the non-disclosure agreement make sure that the agreement effectively outlines what confidential information means and what is its scope with respect to your business.
Be specific so as to avoid any discrepancies.
Often parties limit their agreement to the time the parties are engaged. Meaning that once the engagement ends, they are free to leak information.
The best thing to do here is to enforce the agreement for a lifetime.
Non-disclosure agreements aren't only for someone outside the organization but also for within.
A properly drafted NDA will have a need to know clause, highlighting the information will be used and who can know about it.
Remember, you need a well-curated NDA and not just an agreement. So, make sure to keep them detailed and precise at the same time.
It will help you work with partners, clients and businesses without hassles in the long run.
Also, you never have to be without the support and counsel of fellow business owners if you join our entrepreneur and business Facebook group.
Daily we share information and content for business owners.
Click here now to join, tell us who you are, and always have the information that you need to support your company’s success.
Do not delay...as your success may depend on it.
Yoel Molina, Esq. (AKA “Mo”)
Feel free to join our WhatsApp group if you want to know more aboutt his and more!
Yoel “Mo” Molina, I am a lifelong resident of Miami, Fl. I am a graduate of Miami Senior High, Class of 1992, Georgia Institute of Technology, B.S. 1997 and University of Maine School of Law, J.D. 2001. I have been practicing law in Miami Since 2001. I am a former training prosecutor in the Miami-Dade State Attorney’s Office. I have experience in jury trials, appeals, and administrative hearings. I have appeared before judges across the State. My experience ranges from civil litigation matters, collection matters, foreclosure, business and corporate, contracts, real estate, leases and employment matters..
"Mr. Molina has always been there for us with timely, reliable and competent advice. He is an important and valuable part of our team." Corporate Client Eric Delgado, President of American International Export, Inc., a worldwide importer and exporter of brand name appliance parts.
"Yoel has been responsive and attentive to our company’s best interests and needs. He has been a valuable resource to our company. Any company that enlists his services would be in good hands-- including our own clients.” Corporate Client Gibran Flynn - Co-Owner and Founder of Eleva Solutions, Inc., the South Florida leader of outsourced HR, Staffing, Training, and Loss Prevention.
"My name is Anastasia Yecke Gude and I am the owner of Healing Hands Therapeutic Massage LLC. In the process of my company’s growth and expansion, I suddenly found myself a few weeks ago in need of a 1099 contractor agreement, and I needed it ASAP. As in, the very next day! I contacted the Law Office of Yoel Molina and his assistant put me in touch with Mo. I sent him what I had drafted up and he replied within a few hours with suggested revisions and clarifications, as well as a few insights I had not even considered. I was thoroughly impressed by the quality of work he provided, especially considering the time crunch I put him in (sorry, Mo!). I definitely recommend his services to anyone in need of a good contract attorney, and I will be calling him again for future work…hopefully in less of a rush next time!"