What are some key factors to know about Non-Disclosure Agreements?

What are some key factors to know about Non-Disclosure Agreements?

Non-Disclosure Agreements are commonly used in situations where a business is sharing important information with a potential investor, business partner, distributor, or prospective buyer to make sure the business and the information they are sharing is protected. Please note that there are two types of Non-Disclosure Agreements, mutual or one way.

In a mutual Non-Disclosure Agreement, the situation allows for both parties involved to share classified information and knowing that the information will be protected. When the Non-Disclosure Agreement is one-way, only information disclosed by one of the parties is protected. Agreements regarding confidential information should specify exactly what information is considered confidential and how the party receiving the information can use it.

It is easier to determine whether written information is confidential than it is when the information is communicated orally. Some businesses choose to have the confidential information that was orally communicated put in writing at a later time to have it officially made confidential and to ensure that the other side cannot find any ways around sharing or using this information without permission to do so.

Another important aspect that needs to be determined in a Non-Disclosure Agreement is how long a party will have to keep any information you receive confidential. It is important to make sure to specify if the term is only for a few years or if it is intended to last forever.

Non-Disclosure Agreements are somewhat technical and it is strongly advised that you use the services of an experienced attorney to prepare, review or negotiate these agreements.

If you have questions, contact an experienced attorney today.

Hutner Klarish LLP is an experienced business law firm focusing on matters related to hedge funds, company formation, private equity, venture capital, employment matters, and many other legal issues that impact your business. For strong legal representation when your business needs it most, contact Hutner Klarish LLP  today to see how we can help.