There are various instances in business when you might want to pass on confidential information with someone else.
But doing this safely is not as simple as pinky swears and gentlemen’s agreements. It requires making absolutely certain that the other party is legally bound to respect the sensitive information you have provided them.
This is typically achieved through the use of a well written non disclosure agreement, or NDA as it is commonly known.
Here, learn all about what an NDA letter is. Also discover what it includes, and how to write a non disclosure agreement.
How To Write A Non Disclosure Agreement
If you have a business, you may be putting yourself at risk by making disclosures without proper legal protections.
Having a well written non disclosure agreement can be the difference between you being protected or exposed.
Let’s discuss what an NDA letter actually is at its root.
What Is A Non Disclosure Agreement?
A non disclosure agreement is a legal contract, typically drafted by an attorney but does not need to be, used when you wish to share confidential or private information with someone, but wish to form an agreement limiting their discretion in disclosing the information to people.
NDAs can also be known as confidentiality agreements or gag orders in common parlance.
NDA letters are frequently used when both parties have a mutually agreeable reason to limit the scope of disclosure of the information.
They can also come into play when businesses or people that utilize third parties for services such as contract management have confidential information being viewed that needs protecting.
Situations That Require An NDA Letter
There are countless instances when knowing how to write a non disclosure agreement would be helpful.
The main thing to keep in mind is if you’re going to divulge something that is confidential.
Next, you need to ask whether it matters to you who the other party also discloses this information to. It also may matter if you are concerned about the other party stealing the information or using it to your detriment.
Types Of Non Disclosure Agreements
When it comes to non disclosure agreements, they typically come one of two different ways, as a mutual agreement or a single-sided one.
A one sided non disclosure agreement, or non-mutual NDA, is for when only one side will be sharing confidential information.
A mutual non disclosure agreement comes up in situations where both parties are sharing confidential info. This means that both will have an interest in obtaining an NDA letter.
Elements Of A Non Disclosure Agreement
Despite all the things discussed, an NDA does not have to be extremely complicated.
In essence, these elements are all that are required, depending on your specific needs:
- Names & other pertinent information of the parties involved
- Detailed description of what is covered under the agreement, such as limitations or prohibitions of future disclosure
- Any exceptions or exclusions in the agreement
- How long the agreement will be in effect for
As long as you have these facets to an NDA letter, you are likely to draw up something adequate to pass muster in terms of quality.
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We hope this article has proved helpful in learning how to write a non disclosure agreement.
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