How Non-Disclosure Agreement Work and Why they're Important

Before we start, we all need to know the meaning of Non-Disclosure Agreement(NDA), Before setting out with your epic world-changing product or service, you will naturally want to be able to talk to your customers, partners or suppliers in confidence – without fear of your confidential information being used by them and especially, without gaining your permission first.

The legal instrument used to help enforce and protect this is known as a Non-Disclosure Agreement or an NDA for short. An NDA prevents confidential details of your conversation being used or leaked. This includes preventing parties from sharing confidential information with other persons who they have been introduced to in confidence during the business endeavor.

Mutual NDA

A Mutual Non-Disclosure Agreement is also known as a proprietary information agreement (PI), secrecy agreement (SA), confidential disclosure agreement (CDA) or confidentiality agreement (CA). It allows for both parties, which are contemplating coming together for a transaction or other business relationships to ensure that what they disclose in their dealings to the other, will be kept confidential.

Why Non- Disclosure is Important

When does it make sense to require another party to sign a Non-Disclosure Agreement? There are probably many instances where it may be appropriate. But the principal situations are those in which you wish to convey something valuable about your business or idea, but still want to ensure that the other side doesn't steal the information or use it without your approval.

Typical examples where we recommend using an NDA:

Presenting your invention or business idea to a potential partner, investor, or distributor;

Sharing information in preparation of a sale of your business, including financial, marketing, or intellectual property;

Demonstrating a new product or technology to a prospective buyer or licensee;

Receiving a service from a individual or company

Some of the Legal Firm that provide service level agreement template and Non-disclosure agreement with some of the basic ideas and they includes the business like

• Advertising Agencies;

• Consultants;

• Audits;

• Website Development;

• Internships;

• Visitor or Factory Tours;

• Software Development;

• Real Estate;

• Inventors;

• Employees;

• Interviews

Legal Review

If you are uncertain about the contents of the NDA you created, we offer a skype call and review with one of our lawyers of the document you created for R500. You will be prompted to select this option after you have finalized the questionnaire. Minor amendments will be made at no surcharge.

Why Mutual?

This NDA (also called a bilateral NDA or two-way NDA) involves two parties where both parties anticipate disclosing information to one another that each intends to protect from further disclosure. This type of NDA is common when businesses are considering some kind of joint venture, business relationship or merger. A Mutual NDA is intended to protect both parties equally from the other disclosing confidential information that they provide.

Included in this Contract

• The names of the parties entering this agreement;

• What is generally defined as confidential information;

• What might reasonably be excluded from confidential information;

• The standard of care required by the recipient of confidential information;

• What the consequences are if confidential information is unlawfully disclosed;

• How long information is required to be kept confidential;

• A non-circumvention clause, prohibiting one party from by-passing the other, and directly contacting a third party which may have been introduced to the other in their dealings;

• Common boilerplate clauses.

How does it work?

When you start the questionnaire, you will be guided through each question with the helping hand of detailed explanations and additional information. Based on your answers, the Mutual NDA will be tailor-made by our system. If you log in or create an account, you can also save the progress of the questionnaire and come back later.

Returns

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Source: https://shop.hellocontract.co.za/business-transactions/non-disclosure-agreements/mutual-nda-confidentiality-agreement-non-disclosure-agreement-template