Non-Disclosure Agreement (NDA) or confidentiality agreement is a legal contract that outlines knowledge, information or confidential material that the parties expect to share to each other. In the same time, both of parties also expect to restrict an access to the 3rd parties. It also used to protect trade secrets and the other nonpublic business information. The availability of Non Disclosure Agreement Template is also helpful. But to make a good agreement, you need more knowledge about it.
The Types of Non-Disclosure Agreement
Non-Disclosure Agreement classified into 2 types. Those are unilateral NDA and bilateral NDA.
• Unilateral NDA is a one way agreement. This is good to share a certain information to the other party and keep the other one to remain secret.
• Bilateral NDA or mutual is an agreement that is more open than unilateral NDA. Both of the parties will supply information even the secret information. It has been used on joint venture or merger.
When You Need Non-Disclosure Agreement
You may need Non-Disclosure Agreement if:
• You are a businessperson and want to ensure the shared business information will not become public.
• You are a consultant who has an access to the proprietary information that is belonging to the other organization. Non-Disclosure Agreement allows you to clarify the information which is shared as well.
When You Cannot Use Non-Disclosure Agreement
However, there are some conditions that are bad for using NDA. Those situations are:
• When the recipient gained the information from the different source
• If a recipient has prior knowledge to the information
• Information that is too common. It cannot be covered by NDA as well
• If the information can be a subject of a subpoena
Why You Need Non-Disclosure Agreement
NDA is not just sharing information to the partner. It is also good for business competitive advantage. This is also good for keeping the proprietary information, specifically from public and unauthorized parties. Overall, it protects the intellectual property such as the trade secrets.
How to Make Non-Disclosure Agreement
You can download a free one below. But however, this free template will never be recommended to be used as your official NDA. Maybe this is good for a small business. But when the business is getting bigger, you need more than just a free template. Asking a reliable lawyer is much better. Their knowledge and experience will help you to make the better agreement. With the good agreement, you can get the better protection. It allows you be more competitive, gain the business and enlarge the business network.
Non-Disclosure Agreement Template (15.0 KiB, 553 hits)