Non-Disclosure / Confidentiality Agreements
Non-disclosure agreements (also known as confidentiality agreements or NDA’s) help protect confidential information.
Often, two businesses will enter into an NDA to enable them to talk freely about their ideas prior to entering into a new working relationship.
They create a legally binding obligation to keep whatever is disclosed confidential and gives you the right to claim compensation if that confidentiality is breached.
Sometimes it makes good commercial sense to enter into a confidentiality agreement. Other times it’s essential.
For example, if you’ve invented a new piece of technology and there’s a chance you could patent it, you must keep it confidential. If you don’t, and the idea becomes public knowledge, you won’t be able to register a patent later. This could result in a huge loss in sales and damage the value of your business.