What Is A Non-Disclosure Agreement?

How many of us have come across the term ‘non-disclosure agreement’ and wondered what does it really mean? A non-disclosure agreement is basically a confidentiality pact. This agreement helps prevent privileged information from falling into the wrong hands or prevents sharing of data with outsiders.Regardless of how businesses function, there are certain operational aspects they wouldn’t like to reveal. It could be an idea for a new service or details on the process behind launching a new product. Leaking of critical information into the wrong hands can sometimes cost businesses money, new customers and possibly the entire company itself.

TYPES OF NON-DISCLOSURE AGREEMENTS

Non-disclosure agreements are of two types. One which deals with information which is only being passed one way and another which deals with information being shared between two or more parties.

A unilateral non-disclosure agreement is used when a business wants to share its information with an outside party. These agreements usually come into play when a business hires an independent contractor to work on a project. The agreement forbids the contractor from using company data for personal gains. Unilateral agreements are also used when a business is preparing to be sold to another person or firm. This allows sellers to share some of their company’s critical data with potential buyers.

HOW TO WRITE A NON-DISCLOSURE AGREEMENT (CONTINUE READING ON BOSSCHICKS.COM )

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