6 Mistakes that can Invalidate NDA

Creating Free Non-Disclosure Agreement online is what anyone can do these days. But it is important to stress over that you don’t make any mistakes while making this legal form as they may invite big troubles without you seeing them coming.

Overview

Specialized processes, client lists, and trade secrets are some of the sensitive information held by the business that directs its survival or demise. No wonder “secret” or “confidential” means differently for businesses. It may be any document, design, sketch, analysis, source code, manufacturing process or technical procedures.

We need a Non-Disclosure Agreement to protect such sensitive information.

 

Six Costly Mistakes that can Invalidate NDA

1. The definition of “Confidential” is too elaborative

Though it may seem overwhelming to share all the possible details in the “confidential” block, one must avoid using a catch-all clause. Instead of writing broad definitions, you should specify a clear-cut definition of what should be kept as confidential and what should be kept as a trade secret. Proper headers should be specified.

 

2. Specified Party on NDA is Wrong

One may assume that the NDA is being prepared for the correct party but it is also important to have the correct name specified on the legal document. Additionally, some simple things like forgetting to include a “limited” or misspelled company’s name can also invalidate the document immediately.

If the company has different legal and trading names, you should decide if you want to include both the names. To be specific, you should include both the names along with business addresses so you never go wrong in pointing out the concerned party.

 

You may check out General Release of Liability Form PDF

 

3. Confidential Information is revealed by Third Party

The NDA may also get invalidated if the Receiving Party gets the confidential details via third-party and not through your legal document.

For instance, if an independent supplier not connected with you by any means reveals the information to the Receiving Party, you cannot specify in your NDA demanding that the Receiving Party must keep the information confidential.

 

4. Secret Information is known beforehand by the Receiving Party

It is predictable that NDA is prepared for keeping information confidential. However, if any breach happens and the confidential information is revealed publicly without involvement of the Receiving Party, the same piece of information will no longer be termed as confidential. Thus, NDA cannot be enforced to cover the leaked information against the Receiving Party.

Do you want to access free printable confidentiality agreement form now?

 

5. NDA is signed by a Party having insufficient binding authority

It is important that the NDA is signed by the authorized persons only to consider it valid. If the company’s representative signs the NDA who has no authority to make contractual decisions nor is a partner of the firm then the legal document is invalid.

 

6. Bad Jurisdiction

NDAs may vary according to states and hence it is vital to clarify the jurisdiction you wish to apply to the agreement. This ensures feasibility and enforcement of the agreement instead of invalidating the NDA immediately.

 

Make Free Non-Disclosure Agreement with Forms Creator

Using our Legal Document Generator, you can create a Free Non-Disclosure Agreement in a few minutes. Also, you need not worry if any of the above-mentioned mistakes will be made in your document as the template is created and verified by professionals.