Every entrepreneur seems to need to protect all confidential information and the confidentiality agreement document will help you to get that. We will show you why this thing is important as well as the guide to create one.
About the confidentiality agreement
We also call it as the non-disclosure agreement or the NDA. In order to protect the confidential information of your property or business, you need to have this document to maintain the competitive advantage. Basically, it can be used to protect any intellectual property from going into the wrong place. Writing the NDA before share the confidential information is important, so both parties accept every duty and privilege.
The purpose of the confidentiality agreement
The NDA is really useful to protect your business. If you want to protect your confidential information about the business and do not want it goes public, this form will make it legal. If another party did the opposite then you can bring it to the legal way or suing the party who has violated the signed contract.
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Other than that, this form can also be used for a consultant who has confidential information about a company or project. The form will separate the information that can be and cannot be revealed to the public. The agreement is formal and both sides have to sign on the document. Generally, there are two types of NDA documents.
The first is a unilateral NDA, which is about one party that agrees to not disclose a certain kind of information about another party. This is the most common NDA contracts. If you have a business and you use a service from contractors then you can use this document to not share the information outside.
The second type is a mutual NDA, which will include both parties to acknowledge not sharing each other’s information to the public. Typically, the mutual NDA is used when both parties have confidential information.
How to write a confidentiality agreement
This document is very straightforward compared to other documents for business agreement. Other than the signatures of both parties, there are at least two main things you must include in the document. First of all, make sure which type of NDA you will use.
The first thing that must be included in the document is the confidential information that cannot be shared with the public. It must be clear and exact because, in fact, you can state a very specific piece of information that you want to protect. The term “business practice” is hard to define after all.
Other than that, do not forget to state the period of the NDA will last. The time frame includes the date of the NDA will run.
The guidelines for the NDA document
If the NDA is violated, the party who shared the information to the public can be sued for damage and payback the profit lost from another party. Even in some cases, it can lead to a criminal charge. Feel free to ask a lawyer if your agreement is breached by another party and this is the end of the confidentiality agreement.