An NDA stands for a non-disclosure agreement, and is the most common agreement requested by business owners and creatives. NDAs are super simple and need to be understood by entrepreneurs. An NDA is defined as a contract through which the parties agree not to disclose information covered by the agreement. An NDA protects confidential information between two parties.
Question: When do I need an NDA?
As I mentioned, NDAs are used to protect confidential information, so any time you want to share information and make sure it does not become public, an NDA would be a good way to make sure that your rights are protected. Examples include:
- If you are pitching a design or an idea to a company and you don't want them to use that design.
- If you are providing research or data to a company.
- If you are hiring an employee, you may ask them to sign an NDA.
- If you are closing a deal, for example if you are purchasing a company or a part of it, you may ask the other party to sign an NDA.
As you can see, NDAs are used for a wide variety of transactions and are simply used to keep information away from the public domain. The agreements are generally less than a page in length.
By Attorney Fajer Ahmad
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