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Business Non-disclosure Agreement Template
What Is a Business Non-Disclosure Agreement?
A Business Non-Disclosure Agreement is a legal document formed to prevent an individual from sharing private and sensitive details with any other party that is not authorized to have access to the information in question.
Alternate Names:
- Business NDA;
- Business Non-Disclosure Agreement Form.
It is mainly done by businesses to protect any company secrets and any other sensitive information are not distributed to fellow competitors. If an individual breaches the agreement, they can be taken to court and as a result, will have to pay a rather large financial compensation package.
There are two main types of these Non-Disclosure Agreements. A unilateral Non-Disclosure Agreement for business is signed when only one side is receiving this secret information that they should keep to themselves. In a mutual Non-Disclosure Agreement, ideas and secrets can be shared by all parties.
A Business Non-Disclosure Agreement template can be downloaded by clicking the link below.
What Does NDA Stand for in Business?
NDA's can help protect various business-related secrets that could have a devastating effect on a business if such details got out to the general public or another competitor. The most common instances for using NDA's are listed below:
- If your company is working with subcontractors . During this working process, the subcontractor may require and may be authorized access to confidential information. To make sure that this information does not go any further, an NDA is signed;
- If you are planning on a new and original business idea that you need to pitch to any potential investors or even your own business partner . Even if you are extremely close to these people, you should still seek to sign the document as it will offer you peace of mind and protection;
- If an individual or another company has expressed interest in acquiring your business, you may need to share some financial information or sensitive information related to business operations . You want to make sure that this information stays between yourselves;
- If you have developed an exciting new product and you are pitching it to a potential buyer, you too should ensure that you have an NDA in place;
- In most cases, your employees will need access to sensitive information or company secrets in order to successfully and correctly carry out their job . Whilst working in the company, if permitted, the employee will have access to such information but should only keep it to themselves - not even discussing with fellow colleagues.
The specific information which is classed as sensitive should be included in the agreement and should be as clear as possible. It is important to understand that only the information specified in the agreement will be affected by the NDA. If this information was received prior to filling in and signing the NDA, it will not be covered by the NDA and the agreement becomes invalid. In any other cases, a business can take an individual or company to court if there has been a violation of the agreement.
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