The Basics of Non-Disclosure Agreements
Non-disclosure agreements (NDAs) can be important for many business owners to protect proprietary information. While the terms can – and should – vary from contract to contract, NDAs can be essential for companies that must share information as part of their operations.
Common Elements of NDAs
NDAs are confidentiality agreements, and you want to ensure your contract covers the necessary bases and is valid and enforceable. The following are some common terms of this type of agreement:
- Identifying the parties bound by the agreement who will receive the information
- Defining what is considered to be confidential information for a specific project
- The scope of the confidentiality, which generally includes keeping it secret and not using the information for their own benefit.
- Any exceptions from confidentiality requirements
- How long the information must be kept confidential
Should You Have a Non-Disclosure Agreement?
Are you advancing a new business idea? Are you trying to seek partners to develop a new invention or technology? Do you utilize independent contractors or parties as part of your operations? The above scenarios – and more – generally require you to share valuable information with other parties that they might be able to use for their own profit. Even if you are giving certain employees access to customer lists, processes, designs, and other proprietary information, there is the chance they might leave the company and use the information to their benefit – and to your loss. Many companies have employees sign NDAs, as well as outside parties.
Consult with a Business Contracts Lawyer in Houston
If you believe you might need an NDA, you should have the agreement drafted by an experienced Houston business contracts attorney. Attorney Tim Sutherland can help with all aspects of your contracts, so please call 713.300.1946 or contact us online to learn more about our legal services to Houston businesses today.