A non-disclosure agreement (NDA) is also sometimes referred to as a confidentiality agreement. This business contract helps to protect confidential information that may have to pass between individuals for the sake of a business arrangement. Depending on the guidelines set forth in the NDA, both parties commit not to disclose confidential business information to any third party except in accordance with the rules stated in the contract. Here are some benefits of issuing an NDA.
#1: Helps to Define What Is Meant by Confidential Information
A good NDA should define confidential information. This allows you to protect things such as trade secrets and any other information that has to be passed on for the sake for the business arrangement. Keep in mind that federal legislation provides immunity from breaking agreements in certain circumstances to protect whistleblowers.
#2: Helps to Set and Enforce Consequences
Rather than having a vague idea of the consequences for breaching trust, an NDA helps you to have legitimate legal recourse should the contract be broken through the unlawful dissemination of confidential information.
#3: Preserving Business Relationships
An NDA can give real peace of mind because you know your confidential information is safe and so is your business relationship. Since everyone knows what confidential information is being protected and what the consequences are for breaching the agreement, misunderstandings that might otherwise quickly end a business relationship may be avoided.
Creating Enforceable Non-Disclosure Agreements
Of course, in order for a confidentiality agreement to be worth anything, it has to be drafted in such a way that it is enforceable in court. That calls for expertise in business law that the average businessperson would have no reason to possess. That’s what Pokala Law is here for.
If you need an expert at drafting enforceable business agreements but don’t want to break the piggy bank, you need a business attorney who supports small business. Get in touch with Pokala Law today by calling 1-844-685-1487 for an affordable business contracts attorney.