5 Signs You Should Utilize a Non-Disclosure Agreement

Non-disclosure agreements, or NDAs, are legally binding contracts that serve as a promise to not share or use any information that the signing parties have access to.

It’s a great way to maintain confidentiality between employers and employees as well as business partners to avoid any leaks of information. Trying to figure out if an NDA is something you should have? Keep reading to find out more!

1. You’re Negotiating a Deal

If you have a few people involved in a deal with your company, it’s important to have non-disclosure agreements in place.

The reason is so other people can’t access the deal information, your company’s financial records, or jeopardize the deal. This will also help you keep whatever is discussed between you and the seller/buying.

2. You’re a Startup/ Have A New Product or Idea

One of the biggest mistakes sellers make is not protecting their ideas from being stolen.

The best way to protect your intellectual property is by having nondisclosure agreements in place so the other person can’t run away with your idea. This is also important if you are someone who waiting on a patent, trademark, or are in the middle of producing your product.

3. There’s Access to Private/Confidential Information

The US Privacy Act only provides so much protection, but it doesn’t protect other people using information they may come across.

It’s important to have an NDA in situations where people will have access to personal and confidential information. This makes sure that they can’t use the information for their own personal uses or even sell it to third parties.

4. You’re Working With Freelancers/Contractors

If you employ individuals who are only with you temporarily, the protection an employment agreement has is likely not enough.

Freelancers and contractors will have access to some or all of your company information. They can sell it to third parties or use it for their own personal gain and an NDA can help stop sharing business information. It will also make sure that these temporary workers don’t apply what they’ve learned at a competitor.

5. There’s a Need for Anonymity For Those Involved

If you or anyone involved has to be kept a secret, an NDA can make sure that it stays a secret.

Sometimes silent investors or even large-scale businesses may want to keep their business dealings a secret. In these situations, the NDA will make sure that their identities are protected from being made public. It will also keep your involvement with a company or individual a secret.

The Need for Non-Disclosure Agreements

Non-disclosure agreements can be used in a variety of situations and should not be missed from the paperwork that you put together. Whether you include it as an employee NDA agreement or between business partners, the NDA will keep you legally safe from information leaks.

Like what you’ve read? Be sure to check out the rest of our site for more advice on keeping your business safe!