Non-Disclosure Agreement (NDA) | Commercial Law

What is a Non Disclosure Agreement?

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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Non Disclosure Agreement

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Frequently Asked Questions

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.

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 indefinitely!

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.

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Non Disclosure Agreement

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What is a Non Disclosure Agreement?