A non disclosure agreement is an official deal between two parties whereby one party legally sets a barrier for the other party so that the latter can not reveal any information pertaining to the former especially those facts that are crucial for the company. The company’s management policies, prospective ventures, introductory plans, business secrets, amount of intelligence and client details belong to a very secretive zone that it tries to keep undisclosed from the public or media. This strategy may be taken up as an effort to guard the company’s goodwill or to abide by the states’ patent business laws. As any business firm has to enter into a formal relationship with another to trade business, it becomes important that the parties are made to sign a non disclosure agreement form. Only firms working in isolation may steer clear from such declarations if all work is dealt by in-house staff and employees.
The use of such a document is in the following:
1. Protection and security it provides to the company
2. Facilitation of the work procedure
The effect of this declaration remains for as long as the two business parties are connected formally and the business dealings are shared by them. The main issues that are to be addressed specifically in the document are as follows:
- The biographies of the business firms must be provided in a compact format to shed light on its work motives and business vision.
- Nature of the agreement has to be defined whether both the parties have to keep confidential information undisclosed or the agreement is binding on one of the parties only.
- The type of information has to be mentioned which the parties are not supposed to reveal like software passwords, financial investments, training programs and the like. So the information can be custom made for this purpose.
- The non-disclosure period is of particular importance here because the agreement will have to make clear for how long the party has to maintain secrecy and to what extent.
- The specifications regarding which person/persons the information needs to be kept private from has to be given by laying bare its actual purpose.
- Finally the signatures of the parties have to be protected in the right space.
This document may be prepared with the help of web templates or by consulting lawyers for better grip over the legal indications of violating the agreement’s terms and conditions. Non Disclosure Agreement.