Why you need a Non-Disclosure Agreement
Your business has a plethora of documents, knowhow, strategies and plans that you certainly wouldn’t want to fall into the hands of your competitors. That’s why in the early stages of a business relationship, a Non-Disclosure Agreement can be vital to ensure that both parties and your intellectual property are protected.
We love what Non-Disclosure Agreements can do for our clients – so much so that we’re developing an AI tool to review them for you to flag potential issues and tell you how to correct them. Watch this space. Until then, our human lawyers will review these for you!
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What this Non-Disclosure Agreement includes
A Non-Disclosure Agreement (aka an NDA) is a contractual promise or mutual confidentiality agreement between two parties to protect sensitive information from third parties where one or both parties will be disclosing confidential information to each other for general commercial purposes.
The NDA lays out what information needs to be kept safe, how to ensure its secrecy and/or how the information may be used by the other party.
The recipient of confidential information agrees that it will not use the information for any purpose that is not set out in the confidentiality agreement.
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Frequently Asked Questions
Q: What is a mutual NDA?
A: There are two types of Non-Disclosure Agreements; mutual and unilateral. A unilateral NDA is one way; only one party must keep the other party’s confidential information safe and the other is free to do as they please. Is that fair? We don’t think so. In a mutual Non-Disclosure Agreement both parties make a legally binding promise to protect and keep each other's secrets hush hush. We at Law 365 believe this leads to business relationships built on trust and respect.
Q: How long can an NDA last?
A: Information moves fast in the Tech industry. Yesterday’s secrets are old news! In an NDA you should always find a clause on the duration of confidentiality. The most common duration is 3-5 years, though you can find NDAs lasting 7-10 years... or even eternity!
Q: I’ve been given an NDA; how do I know if I should sign?
A: There could be several implications, both legal and commercial, that could arise when signing an NDA. It’s important to understand the obligations and responsibilities the NDA imposes on you. Understanding the finer details go hand-in-hand with risk management. If you need help reviewing an NDA, a solicitor is the best place for advice.
