NDA (non-disclosure agreement) is the best way to dealing with the independent contractors, vendors and other businesses. This is an agreement between business parties to confidential information disclosed in a business transaction. This confidential information generally consists of finance details, business deals, client details, business methods. If one party subsequently breaches the non-disclosure agreement, the injured party can sue for damages, an injunction against further disclosure and attorney’s fees. NDA can also be used to restrict the two parties for their use of materials provided or they can restrict the use of materials by a single party.
Ø Sometimes NDA used as one way agreement. In this process one party disclose some important information to other party, but the other party should keep this information keep secret doe to some reason. Due to the secret reason the agreement comes between the two parties to ensure the secrecy.
Ø In NDA generally the receiving party requires to keep information secret which is directly receive by the disclosure party, but it is not required to keep the information secret if the receiver get the information from third party not directly from the disclosure party.
Ø Another type the NDA is used for joint venture or merger. This is a mutual agreement between two parties in which the both parties required to keep the information secret provided to each other.
Ø In some cases the practitioners used to encourage the drafter to make the provisions "fair and balanced" in case the drafter's receiving-party client later ends up as a disclosing party, or vice versa.
Ø Employee can use the owner’s or company’s confidential information for do its job or duty but under NDA’s agreement the employee has no right to disclose the company’s information outside the company beyond the limit such as its employees, directors, advisors or consultants as per the agreement.
Ø In business you always go through NDA for safe business. If a party refuses to sign NDA without any valid reason it is the best opinion to you is you should walk away from the business realationship.
As a short note NDA is non disclosure agreement between parties to keep information secret as per the agreement norms. For more details please go through a business lawyer.
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