In order to stay afloat and relevant in the industry, businesses would do anything to maintain their status. One way of doing that is to keep their business processes secret to prevent being copied by other businesses. A way to ensure that secrets stay between two parties is by securing an NDA or a non-disclosure agreement. A non-disclosure agreement is an agreement between two parties wherein they agree that the transactions made between them must be kept in confidence.
5 Steps on How to Make a Non-Disclosure Agreement
Step 1: Identify both parties
The first step is to identify the parties. This includes the exclusive owner of the information and the recipient. The parties may be an individual or company. This is vital information because it brings clarification to the nature of the business of the parties involved. Do company research to make sure you got their names right. For example, if the company has “incorporated” or “company” to its name, do not exclude it. Erroneous names will make the contract null and void.
Step 2: Define what is deemed to be confidential
In this step, this is where you define what is deemed “confidential information”. If you are the disclosing party, then you might wanna be as comprehensive as you can so the recipient wouldn’t be able to find gaps and start disclosing the confidential information. However, if you are the recipient, you should make sure that the information is understood by you. If you have any prior verbal agreement, you can incorporate it here to make it legally binding.
Step 3: State the scope of the confidentiality obligation by the receiving party
The focal point of an NDA is to make sure that confidential information is kept secret. The recipient must not use confidential information for his benefit. Stealing ideas is an example. The recipient also has the obligation to keep the information secret. He can also come up with some preventive measures such as ensuring that only limited people know about the information. If there is a breach of contract and the information is comprehensive enough, then the recipient can be sued for damages.
Step 4: Expound the exclusions from the confidential agreement
There are instances where the leaked information is out of the recipient’s control. That’s why there are exemptions to the NDA to somehow lift the burden of the recipient. These exemptions include information that is already out in the public (given that the recipient isn’t responsible for it), information that’s given by the third party, and many others. This should not be a problem as long as the recipient is aware of what is confidential and what is not.
Step 5: Enunciate the term of the agreement
It’s important to indicate the term of the NDA because eventually, the information will become irrelevant and useless. They usually last from one to three years, depending on the nature of the business and other factors. Recipients usually ask for the definite period of NDAs. It’s also burdensome on the part of the recipient because they’ll be constantly carrying the obligation.
7+ Non-Disclosure Agreement Templates
1. Non-Disclosure Agreement Template
Establishing your company can both be exhausting and fulfilling. It’s a huge investment. That’s why it’s only reasonable to protect its interests. Avoid potential information leaking by using this Non-Disclosure Agreement Template. This template consists of everything that an NDA should consist of. You just need to provide whatever is asked. Download this now to aid you in establishing an agreement.
2. Celebrity Non-Disclosure Agreement Template
As a person who’s constantly under the limelight, it’s common for people to invade your privacy. Whether these might be you routinely running your errands, love life, and other personal endeavors. They deserve to be protected and you deserve your space. This Celebrity Non-Disclosure Agreement will help you do just that. Available in formats such as Google Docs, MS Word, and Pages. Get yours now for free.
3. Author Publisher Non-Disclosure Agreement Template
As an author, you want to preserve and protect your intellectual rights. For publishers, they deserve to have a share of book royalties. For this agreement to be legally binding, use this Author Publisher Non-Disclosure Agreement Template. This template protects the rights of the author and the publisher. This template can be customized using Google Docs, MS Word, and Pages. Grab the chance to download this now!
4. Simple Non-Disclosure Agreement Template
Certain information (both ugly and not), will have to be divulged and discovered by someone if you decide to have an agreement with them. To prevent these secrets from coming out, you will need this template. Replace the highlighted words with your company’s info to use this template. You may download this template now to help you with the agreement.
5. Visitors Non-Disclosure Agreement Template
Visitors are normal for businesses. Common purposes might be mergers, proposals, and etc. However, there are some people disguised as visitors for the sole reason of discovering the ins and outs of the company. For preventive measures, we suggest using this template. An NDA between the company and its occasional visitors. Its main purpose is to protect whatever needs to be protected. Download this now for your legal protection.
6. Mutual Non-Disclosure Agreement Template
Sometimes, two companies decide to come into an agreement for transaction purposes. To protect each other’s assets, they must come to an agreement to sign an NDA. It cannot be avoided that one might get ideas from the other considering they are two independent bodies and competitors too. Signing a mutual NDA will be beneficial for both of them. Grab the chance to download this template now to aid you in your mutual agreement.
7. Confidentiality and Non-Disclosure Agreement Template
When you decide to come into an agreement with another business or an individual, there are aspects that you will be obliged to divulge. These aspects include confidential information. In order to protect your company’s interests, secure it with an NDA. This is an inarguable way of protecting your assets. By the mere thought that you are secure, you are comfortable and confident with your transactions. Get this template now for free!