Non Disclosure Agreements (NDAs) are the key beginners for every organization with contract dealings. NDAs are becoming crucial aspect for business, that the whole ethical and risk mitigation framework of the business completely rely on.
In an organization dealing with multiple people in terms of employers and clients, it becomes a huge responsibility to manage details regarding employment tenure, packages, other benefits and service duration, agreed on payments, billing, support, and maintenance period for their clients. It’s in overall creates a confidential relationship between both parties of the Non-Disclosure Agreements.
NDAs are agreed and signed to not disclose for the general public the confidential, proprietary information or the trade secrets. NDAs are more common in any business as well as equally more important and legally binding
What is the importance of NDA?
• Protect from sensitive and confidential information.
• Breaching of NDA enables one to be subject to a lawsuit.
• NDAs prevent loss of profits by ensuring the right penalties with returns.
Types of NDAs
- Unilateral Non Disclosure Agreements
- Mutual Non Disclosure Agreements
In Unilateral Non-Disclosure Agreements only one side of the party is disclosing confidential information to the other party. In Mutual Non-Disclosure Agreements both, the parties involved share and disclose confidential information which is to be protected and is of critical value to both sides.
What actually gets defined as Confidential Information?
Confidential Information in the NDAs is made into legal contracts by preventing the party from signing the NDA from revealing or sharing the business information and other sensitive information outside to that business. Some examples include the name and personal details, employment details, company details on business,medical history records, plans,reports, and strategies belonging to a business which if shared brings significant loss and neglect importance to privacy.
What information should be included in the NDA?
The information that should be vital in NDAs are :
• The parties involved in the NDA.
• What is the information that is deemed confidential?
• The individual obligation towards confidentiality.
• Clarity on any exclusions from confidentiality.
• Other terms and conditions that should be included in the NDA specific to the business.
Go ahead and draft the perfect NDA that will give your perfect business confidential agreements.