Businesses and companies use NDAs or Non-Disclosure Agreements to protect confidential information. However, if an NDA does not contain certain elements, it may not be legally enforceable. MBW Law can help ensure you include all key elements in your company’s NDA to make the agreement effective and enforceable. Below are key elements that a business should include in its NDAs.
1. Identification of Parties
A non-disclosure agreement should include clear information about the parties involved. In this document, the person providing data is written as a disclosing party while the person who promises not to expose information is written as a recipient. If the recipient shares this information with others and it is necessary to disclose this information to affiliated people, then a new agreement will be signed among recipients.
2. Confidential Information Description
The core of a Non-Disclosure Agreement will be largely guided by the information that is considered confidential. Both parties may agree that the disclosed information is confidential. The party requiring the NDA may describe confidential information or describe the way information is considered confidential, by stamping a document confidential.
Oftentimes an NDA contains a catchall clause that considers the information confidential that most would assume is confidential. The person that is requiring an NDA typically includes broad information within this section to protect any company secrets, intellectual information, and proprietary information.
3. Term Of The Non-Disclosure Agreement
The party requiring the NDA typically wants the agreement to be indefinite, however, the recipient of the NDA demands a term that is defined and included in the agreement. There are some instances where an NDA is part of an ongoing agreement. In this case, there should be a defined term length for the agreement that should include additional time after the termination of the relationship. Each case is different and should be carefully considered before agreeing to a perpetual NDA. If you are unsure about some of the details listed within the NDA, an Atlanta business lawyer can provide guidance and legal advice on how to proceed. Contact MBW Law today. Atlanta business attorneys, MBW Law, are dedicated to assisting clients in Atlanta, GA