Beginner’s Guide to Non-Disclosure Agreement
Free Non-Disclosure Agreement Forms are available online, and most of the users are now turning towards this facility. If you’re a newbie, you’ll find this read helpful to learn the basics of Non-Disclosure Agreement forms, also referred to as NDA throughout the blog.
What is a Non-Disclosure Agreement Form?
A Non-Disclosure Agreement is a legal document that is signed between two parties that they will keep the information mentioned in the document confidential. This is the reason why this legal form is also known as Confidential Agreement (CA), a Confidential Disclosure Agreement (CDA), a Secrecy Agreement (SA) and a Proprietary Information Agreement (PIA).
The Purpose of Signing an NDA
The access to the confidential information is by default prohibited for any third party. It is not to be mentioned that NDAs are signed between two companies, individuals or entities. An NDA can also be signed between an employer and an employee. The main purpose of signing the Non-Disclosure Agreement form is to protect intellectual property rights such as databases, client lists or other sensitive information regarding an individual or a business.
3 Types of Non-Disclosure Agreements
The following are the types of non-disclosure agreement forms to be known:
- Unilateral NDA (involves two parties where one share the information and other prevents it)
- Bilateral NDA (involves two parties where both of them exchange confidential information)
- Multilateral NDA (three or more parties are involved where one shares the confidential information while others are expected to preserve it)
Core Elements of Non-Disclosure Agreements
There is no need to make free printable confidentiality agreement forms lengthy or complicated. You’ll also find some good examples on the internet which don’t make you turn more pages.
The following are the key elements of NDAs:
- Identification of the parties
- A Brief about the information to be deemed as confidential
- The confidentiality obligation scope by the receiving party
- Any exclusion from the confidential treatment
- The term of NDA being signed
Benefits of Signing an NDA
- The signing parties are bound to follow the obligations
- They can understand the value of the confidential information
- If the confidential information is leaked, the party who has to bear the penalties and all respective provisions are mentioned in the document. All this is legal so the breaching party is bound to bear the consequences.
- NDA helps in two ways – the purpose of commitment is achieved as well as the information is safeguarded.
- The owner can take legal actions based on NDA as it protects the rights of the owner regarding the secret information being shared.