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In today's digital age, information can be disseminated within seconds. Confidentiality and Non-Disclosure Agreements are therefore used in circumstances when you wish to convey something valuable about your business or idea, but still want to ensure that the other side doesn't steal the information or use it without your approval.
Confidentiality/ Non-Disclosure Agreements are used in:
Disclosing valuable aspects of a business such as its intellectual property to a potential buyer or investor; Disclosing financial information, marketing strategies, and other information with a prospective buyer or investor; Employment agreements where employees may have access to confidential information of your business during the course of their employment.
To be effective, Confidentiality/Non-Disclosure Agreements will require at a minimum:
Clear identification of the parties to the agreement; Clear definition of what is “confidential”; Clear terms of the confidentiality obligation by the receiving party Clear terms of any exclusions from confidential treatment The term of the agreement.It is important to note that not all valuable information is confidential. For example, an employee's skills and general knowledge may be enhanced by having worked for a particular employer, but such trade knowledge is not necessarily confidential information of that employer. As such, careful consideration should be given at the onset in identifying what is confidential and should be covered in the agreement.
At Sodagar & Company, we can assist with drafting your Confidentiality/ Non-Disclosure Agreements, tailored to suit your specific or organizational needs. Please contact us to see how we can assist your business or next venture.
