Non-Disclosure Agreement Basics
In order to successfully conduct business, a company in New Jersey may well have to share confidential information with other parties at times. In order to feel confident doing this, they may find it important to enter into a special type of contract using what is called either a non-disclosure agreement or a confidentiality agreement.
As Forbes explains, these contracts really have two purposes or bind parties to two different things. The first of these is to not share the confidential information with others who are not identified as able to know it. The second is to not make use of the confidential information themselves.
According to Entrepreneur magazine, there are multiple times in which the use of a non-disclosure agreement may be necessitated and one of these may even be with a company’s own employees who must have access to sensitive company data. Business owners who may be interested in selling their company or bringing in a new partner may also have the potential buyer or partner sign a confidentiality contract. Vendors may also logically be asked to sign an NDA as their ability to provide essential services may hinge upon knowing certain business secrets or strategies.
If both parties in an NDA may need to share confidential information with each other, a mutual agreement may be warranted. Otherwise a non-mutual non-disclosure agreement will suffice if only one party will be required to disclose secret or sensitive data. Terms of a contract should outline exactly what information is covered or not by the agreement.
Outside General Counsel Solutions
If you would like more information on this issue or if you are a small business owner in need of guidance, please contact us today. At Santomassimo Davis LLP, our team of lawyers, experienced in compliance, can help effectively minimize your company’s risk and avoid the unnecessary liabilities many businesses unknowingly face.
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