HOW TO PROTECT YOUR CONFIDENTIAL INFORMATION USING A NON- DISCLOSURE AGREEMENT
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Being an entrepreneur requires different skills, methods, and knowledge on how to protect and run your business without any breach of laws and regulations within your business sector. And, the most efficient way of protecting your confidential information is by drafting a well detailed NDA agreement.
A Non-Disclosure Agreement (NDA) is a legal document created between two parties that wish to share confidential information between themselves, while legally forbidding either party to disclose the information to any other person or entity. A non-disclosure agreement is also known as a confidentiality agreement (CA) or a confidential disclosure Agreement (CDA).
Thus, as an entrepreneur, it is important to develop an NDA agreement when working with vendors, business partners, employees and contractors to avoid all kinds of misconceptions, especially when dealing with friends. A typical NDA agreement should include: Protected information, Timeframe Obligations, Method of resolution and what happens if a breach occurs.
The Basic Elements of an NDA Agreement are:
Definition of Confidential Information. i.e. Defining exactly what information cannot be disclosed
Prohibition of Unauthorized Use. This Prevent forfeiture of patent rights, which in some cases occur automatically once a public disclosure is made
Time spans are also an important feature of an NDA, i.e. the agreement mandates the parties to secure the information for a particular number of years which is usually negotiated by the parties.
Detailed below are some vital information that should be included in an NDA agreements:
The complete names and contact information of the parties
A complete description of what information is confidential
Any cases in which restrictions on disclosure are not applicable
The duration of the confidentiality
Obligations regarding proper use of the information
Circumstances where disclosure is permitted.
What happens if any Breach occurs?
You have the right to clearly spell out the penalties on your NDAs for any default, which is usually the payment of a particular amount in the event of a breach, although in most cases, the remedy may only be enforced through a Court action. Its however important to note that the mere fact that you sign an NDA puts the other party in check and mostly unwilling to circumvent you or misuse the information bearing in mind, the consequences of such a breach.
P.S: If you have an NDA with someone who uses your confidential information without authorization, you can file for a court order to prevent the violator from making any further disclosures, you can also sue the violator for damages.