What is a non-disclosure agreement?

12 April 2019
Non-disclosure agreements (NDAs) are very common. Company information, new product information and client/patient confidentially are all covered by NDAs as a way to ensure confidential information is protected and stays that way.
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Non-disclosure agreements (NDAs) are very common. Company information, new product information and client/patient confidentially are all covered by NDAs as a way to ensure confidential information is protected and stays that way.

Knowledge of how these legal documents work is crucial before you set to implement them and ensures you make the best legal decision.

What are NDAs? 
In employment law, an NDA is a contract between employees and companies that prevent them from revealing confidential information. By signing an NDA, individuals are legally agreeing to not release or divulge information shared with them. If they do share the information, as an employer, you can claim a breach of contract.

In business, if information is released about a new product or concept, the creator can still hold onto the rights to a product tor idea if there’s a properly drafted NDA in place. 

NDAs can also act as legal documents that outline exactly what is and isn’t confidential information.

What should an NDA include?
A well-drafted NDA should be clear and specific. They don’t need to be long and complicated – the best agreements usually don’t run more than a few pages long. 

The main elements of an NDA include: 

  • parties clearly identified
  • clear definition of what is deemed to be confidential
  • an outline of the obligations by the other side of the agreement
  • information on what isn’t confidential
  • the length of term of the agreement

When is an NDA advised? 
It may be appropriate to use an NDA under many circumstances. The main situations are those in which you wish to convey something important and valuable about your business and want to ensure that the other party doesn’t steal the information or use it without your consent. Situations when an NDA might be needed include:

  • when divulging specific client or customer information for a company
  • for embargoed news releases, such as for a new product launch or announcement
  • for unreleased product information or business models
  • for an employee with access to test results before patients 

Please contact us to discuss NDAs or employment law further. You can call us on 01206 576 151 or email us.