A non-disclosure agreement is the name given to a contract in which two parties signing it give their consent not to reveal any confidential details outside of work. These are generally created in order to protect confidential information related to businesses. For example, if a person is doing some business and has a few contractors or employees to carry out some task that needs sharing some sensitive details with others, then that individual would not like the latter to share those details with anybody else anyone else.
In order to prevent the sharing of the confidential information outside of work, that person can make the contractors and workers sign a non disclosure agreement. This is one of the important legal forms used today by top companies like Apple and Samsung, which can go to extreme lengths to protect sensitive business information.
What are the important clauses included in a non disclosure agreement?
The important clauses include:
Parties to the agreement
Non-disclosure agreements are generally of two types, which are:
• One way or unilateral agreement - In this kind of an agreement, only a single party has the information - which needs to be shared with another party, before the signing of the agreement. The party with the details is referred to as the disclosing party whereas the other one is known as the receiving party.
• Two way or mutual agreement - in this kind of NDA template in California, both parties have details which they share with one another.
The contract must clearly state which details need to be kept confidential or protected.
Disclosure of confidentiality
According to this clause, the purpose for the use of such information will be specified. The names of the people with whom the confidential details can be shared may also be specified.
The contract needs to specify the agreement date as well as the duration for which the agreement would be valid. It can offer clauses for whether the application and rules for the disclosure will be applicable or not after the contract expiry.
The contract must also offer remedies that need to be adopted if the agreement is breached by either party.
Carl writes often about legal drafting like rental & commercial lease agreements, non-disclosure agreement and bill of sale to help the people.
Last updated June 22, 2022