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.
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.
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:
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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