Non Disclosure Agreement (NDA)
What is an NDA?
An NDA or non-disclosure agreement is a legally binding agreement between the parties that outlines the terms and conditions under which one party share confidential information with the other party. An NDA is designed to protect sensitive information from being disclosed to third parties without proper authorisation, ensuring that the information remains confidential.
How is an NDA different to a confidentiality agreement?
An NDA and a confidentiality agreement are often used interchangeably, and their purpose is generally the same: to protect sensitive information from being disclosed to unauthorised parties.
When would you use an NDA?
Partnerships and collaborations: you may need to share sensitive information about your business plans, strategies, or intellectual property.
Employee or contractor relationships: you can ensure that proprietary information or trade secrets are not shared with others or used outside work.
Investor discussions: you may need to disclose sensitive financial and business information to potential investors.
Product development: when working with third party developers or vendors you may need to share proprietary technical details.
Vendor relationships: suppliers or service providers may have access to your business’s internal processes or data.
Mergers and acquisitions: prior to finalising the deal you may need to share sensitive financial and operational information.
Technology licensing: to protect your technology from being used beyond the scope of the agreement and license.