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Important Components Of An NDA


If you own or manage any critical function of a business in New Jersey, you are likely to be in a situation in which you must disclose sensitive information to a third party in order to properly get business done. Before you do this or before you choose simply to not proceed at all for fear of what might happen to your information, you should know that there is a special type of contract designed to protect businesses in situations just like this. It is called a confidentiality agreement or a nondisclosure agreement.

As explained by Forbes, this type of contract essentially binds a party to hold in confidence specific information shared with it by your company. It can outline a path for you to seek compensation should the terms of the agreement be violated in any way. This path to resolution should be as detailed as possible so that if it is ever needed, there are no ambiguities. You might even want to consider adding stipulations regarding the use of mediation or arbitration.

A good confidentiality agreement also makes it very clear exactly what information is to be shared and kept secret and how long the agreement should remain in effect. If the parties are in different states, you should make sure the NDA identifies which state’s laws will govern the agreement.

If you would like to learn more about some of the provisions that should be included in a robust contract to protect your company’s sensitive information, please visit the nondisclosure agreement page of our New Jersey business and contract law website.


Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law  in New JerseyNew York and Pennsylvania.

Thanks for reading our latest blog talking about topical legal issues facing small businesses. Learn more from our Outside General Counsel Blogs.



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