Non Disclosure Confidentiality Agreements

There are many terminologies used for the confidentiality agreements like NDA or non disclosure agreement. No matter what terminology is used the purpose of all the agreements is usually same. This agreement or NDA is very important for the organizations all over the world. In this fast paced world where employee turnover ratio is increasing with every passing day and people are changing vendors over the period of time, it is important to protect your trade secrets.

The basic purpose of any non disclosure confidentiality agreement is to protect the secrets of the company before the individual or the firm with which you are planning to do business actually signs the contract with terms and conditions. This way even if the deal does not closes, still the other party cannot misuse or use the trade secrets for own purposes. There are multiple scenarios in everyday life where you might be needing confidentiality agreement template like hiring an employee for a service based company, discussing plan, prototype or unique idea with the concerned part or planning to own the franchise. When the other part signs the NDA then it is liable to protect your secrets whether they get the deal or not. In any case if the information is disclosed, the party at stake can always sue the other party for disclosing important information.

Usually the agreement is prepared by the human resource department or the corporate lawyer of the company. The NDA can be used in multiple scenarios and both for protection of personal as well as business information. The agreement usually does not discuss about the nature of the information that needs to be protected rather it discusses the ways how the sensitive information should be protected by the other party involved in the transaction in case they get the deal or the drop the deal.

Asking the other party in transaction to sign the non disclosure confidentiality agreements makes the firm free to discuss all the ideas without any hesitation and fear about getting it leaked to direct competition or other stakeholders. The information can be as specialized as some chemical formula or as simple as concealing someone’s identity. It is totally up to the will of organization designing the NDA that they want the other party to keep the information to itself only or in certain situations they are allowed to pass it on to the consultants or employees affected.

Some of the most common scenarios in which the non disclosure confidentiality agreements are made include: when the firm is planning to introduce a new product in the market and they show the product to any advertising agency, obviously they do not want agency to tell anything about their product to direct competition before its launching campaign. Other scenarios can be when someone is purchasing the franchises right from a renowned brand; they are liable to keep the secrets of the brand they are dealing with. Disclosure of important trade able information with vendors, suppliers, consultants, lawyers, employees or the outsourcing agencies all can be asked to sign a NDA.

If small firms who do not have formal human resource department or corporate lawyers want to get the NDA signed from employees or other parties, they can look for the confidentiality agreement templates over the internet. These templates are sold at very reasonable fee. Some of the heads that your usual NDA includes are: Elucidation of the agreement, which information the organization considers as confidential, the non disclosure paragraph, the oath or undertaking of the other party that they would not try to steal the work force, ideas and the clients of the firm.

Editors’ notes:

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