Do you have any confidential information that needs to be kept secret? If so, you need a non-disclosure agreement (NDA). NDAs are legally binding contracts between two parties promising not to disclose certain information.
This guide will teach you everything you need to know about non-disclosure agreements, including how to write an NDA and what types of information should be included. Let’s get started!
What is a Non-Disclosure Agreement (NDA)?
A non-disclosure agreement (NDA) is a contract between two parties in which one party agrees not to disclose certain confidential information to the other party. The purpose of an NDA is to protect sensitive or valuable information from being shared without the permission of the owner of that information.
Confidential information is often technical, sensitive, or valuable in nature. For example, trade secrets or proprietary information fall under the category of confidential information. If this type of information were to be released without the owner’s permission, it could cause significant harm to their business.
Types of Non-Disclosure Agreements
There are two types of non-disclosure agreements: Unilateral NDA and Mutual NDA.
Also known as a one-way NDA, this type of agreement is between one party and another. The disclosing party agrees not to share the confidential information with anyone else, while the receiving party does not have to agree to keep the information secret. If the confidential information were ever to be released to a competitor or the public, it would potentially damage the disclosing party’s business.
A mutual NDA, also known as a two-way NDA, is between two parties exchanging confidential information. This type of agreement requires both parties to keep the information secret. The information shared is to be held in confidence by both parties and not shared with anyone outside of the agreement.
Non-Disclosure Agreement Vs. Non-Compete Agreement
It’s important not to confuse a non-disclosure agreement with a non-compete agreement. Although they both involve keeping certain information confidential, they are different types of agreements.
A non-compete agreement is a contract between an employee and employer in which the employee agrees not to compete with the employer during or after employment. This type of agreement is often used to protect the employer’s trade secrets or other confidential information.
On the other hand, a non-disclosure agreement (NDA) can be between any two parties, not just an employer and employee. An NDA protects confidential information from being shared without the permission of the owner of that information.
How to Write a Non-Disclosure Agreement
Now that we’ve covered the basics of NDAs, let’s look at how to write an NDA. When drafting an NDA, be sure to include the following information:
- The parties involved: Include the names and contact information of both parties.
- Definition of confidential information: This should be a broad definition that encompasses all types of information to be kept confidential.
- Exclusions from Confidentiality: Any information that is not considered confidential should be listed here.
- Duration of the agreement: The length of time that the agreement is in effect should be clearly stated.
- Obligations of the parties: Each party’s obligations should be laid out under the agreement.
- Signatures: Both parties should sign the document to make the agreement official.
Once you have all this information, you’re ready to write your NDA! If you need help drafting your agreement, we’ve covered you with our sample non-disclosure agreement template.
When to Use a Non-Disclosure Agreement
As we mentioned before, NDAs are often used in business relationships. For example, if you are considering entering a joint venture with another company, you may want to have both parties sign an NDA. This will protect any confidential information that is shared during the negotiation process.
Another common use for NDAs is when companies are considering hiring new employees. In this case, the NDA would be between the company and the prospective employee. The NDA would protect the company’s confidential information, such as trade secrets or proprietary information.
If you’re ever in doubt about whether or not you should have an NDA in place, it’s always better to err on the side of caution and go ahead and draft one up. After all, it’s better to be safe than sorry!
Tips When Using a Non-Disclosure Agreement
Now that you know all about NDAs, let’s take a look at some tips for using them:
- Get the other party to sign the NDA before sharing any confidential information. This will help to ensure that the information is protected from the start.
- Be sure to clearly define what information is considered to be confidential.
- Keep the NDA simple and straightforward. The more complex it is, the more likely there will be problems with enforcement.
- Make sure that both parties understand their obligations under the agreement. This will help to ensure that everyone is in sync and on the same page.
Create an NDA Template with DATAMYTE
Creating a non-disclosure agreement is tedious due to the intricacies and legalities involved. To simplify the process, you should consider creating a non-disclosure agreement template with DATAMYTE. With this template, you won’t have to start from scratch every time you need to create an NDA.
The DataMyte Digital Clipboard is a workflow automation software that lets you create non-disclosure agreement templates. This software includes a wide range of features that can help to streamline the entire process and ensure you have an NDA ready when you need it.
With the DataMyte Digital Clipboards intuitive drag and drop interface, you can easily create non-disclosure agreement templates in minutes. Plus, you can customize your template anytime and send the NDA to anyone with a click of a button.
If you’re looking for a way to simplify the process of creating NDAs, look no further than the DataMyte Digital Clipboard. Try it today and see how easy it is to create non-disclosure agreement templates!
Now that you know about non-disclosure agreements, you’re ready to draft your own! NDAs are quite complex without a guide, so make sure you use this article as a reference when creating one.
And, if you’re looking for the best and most convenient way to create, save, and share NDA templates, make sure to use the DataMyte Digital Clipboard. Schedule a demo to get started today!