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What Is a Non-Disclosure Agreement?
Simply put, a Non-Disclosure Agreement (also known as an NDA) is a legally-binding contract - its purpose is to create an agreement of confidentiality between two or more individuals or organisations. The party or parties signing a Non-Disclosure Agreement are agreeing that any sensitive or confidential information that they may obtain will not be shared beyond those parties mentioned in the agreement.
An as example, an employee may sign an NDA at their place of work agreeing that any information they come into contact with within the company will not be shared with anyone outside of the business, or perhaps even their department.
Why might you need a Non-Disclosure Agreement?
If you or your business are dealing with private and confidential information and do not have an NDA in place with your colleagues, then there is nothing stopping them from sharing your businesses information with third parties; this could be their friends, family, your clients or even other businesses and organisations - a huge breach of Data Protection Laws - you may thus face consequences as a business.
Having a Non-Disclosure Agreement in place within your business lets your colleagues know that in the event that they disclose any of your company's information, then you are willing to take legal action against them.
What information can an NDA protect?
NDA's can protect any confidential information that you specifically do not want customers, competitors or any third party to gain access to. You can define within your Non-Disclosure agreement what information or data it protects. Typically, NDA's cover the following (but are not limited to):
- Customer, supplier & staff information
- Financial information
- Sales leads
- Business plans
- Business strategies & methods
- Inventions, prototypes, designs, specifications etc
- Trade secrets; for example you may have a secret recipe
- Computer software
What information isn't covered by an NDA?
Typically, but not limited to:
- Public knowledge information
- Any information that you or your business have previously given consent to disclose
- Independently owned information or research
- Information sourced legally from any third party
How to write a Non-Disclosure Agreement?
Writing your own NDA is a complex task. Our templates are designed to give you a head start. Download our sample Non-Disclosure Agreement in Adobe PDF, Microsoft Word (.docx) or Google Docs and adapt it to your needs. Or save time by using our online generator to create the document for you in minutes.
A Non-Disclosure Agreement is an important legal document; we recommend that you seek professional legal advice before using this legal agreement in practice.