What Are Non-Disclosure (or Confidentiality) Agreements?
A non-disclosure agreement (NDA), also sometimes known as a confidentiality agreement, is a legally binding contract that establishes a confidential relationship between two or more parties. The party signing the agreement agrees that it will not share, or make available to others, certain sensitive information that it obtains during the course of its dealings with the other party.
NDAs are routinely used when businesses enter into negotiations with other companies. They allow the negotiating parties to share confidential information without the threat of such information being disclosed to competitors or other third parties.
If you are sharing intellectual property or private financial details about your business, NDAs are a critical tool in discouraging your potential partner(s) from misusing the sensitive information that they learn about your operations. NDAs also provide you with legal recourse should the private information that you shared with signatories to an agreement become public. If you need assistance drafting, negotiating, or reviewing an NDA, The Castle Law Firm is here to help.
When Should Businesses Use Non-Disclosure (or Confidentiality) Agreements?
Businesses should use an NDA any time they want to share sensitive information about their operations with others while also ensuring that they have recourse to seek compensation if the other party uses that information in an unauthorized way. Typical situations where these types of agreements are helpful include, but are not limited to:
- When a business is considering a potential partnership;
- When a business is sharing detailed financial information or trade secrets with a potential purchaser;
- When entering into an agreement with a vendor or other service provider where sensitive information is shared; and
- When presenting a new product (and information about that product) to a potential licensee or purchaser.
Contact The Castle Law Firm
NDAs and confidentiality agreements require examination from a thorough, experienced attorney to ensure that your business is as protected as possible from improper uses of its trade secrets. The Castle Law Firm has years of experience protecting businesses’ rights—and can help you draft your NDA and/or confidentiality agreements, as well as analyze and negotiate relevant provisions for those who are being asked to sign existing agreements. Contact the firm online or call 312-574-0856 to schedule a free consultation today.