Non-disclosure agreements or NDAs are important in business to keep its secrets from other people outside the company. If there is information, processes, practices, and other items that should not be shared with anyone else aside from those directly involved, an NDA will help maintain the confidentiality between the parties involved.
NDAs may be used for different reasons, but their main purpose is to ensure that confidentiality is maintained and respected. For a small business owner, non-disclosure agreements may be used to keep the knowledge and information that’s shared with a small number of workers to a minimum. For those who are on the other end of the contract, it’s important to understand why an NDA is necessary. In most situations, the employer will discuss and explain what the NDA entails, such as what types of information should be kept secret.
Here are the three most common situations where you might need a non-disclosure agreement:
1. Confidential Information
Most businesses have methods and processes in order to build their products, as well as how they get revenue from their services. It’s important to keep this type of information confidential and not reach the competitors’ or the public’s knowledge. An NDA is needed to keep important information confidential to all employees in the company.
2. Product Discussion
It’s important for a business owner who has a licensed product to prevent any information from leaking to other parties. Having an NDA can help keep information relating to product discussions confidential.
3. Offers to Potential Partners and Investors
In business, situations where a business owner may present an offer to someone who will potentially be an investor or a partner in the company could require an NDA. These offers contain sensitive and confidential information that should, under no circumstances, be disclosed to other people. An NDA helps the business owner ensure that the specifics of the offers he gives out to possible investors and partners are not disclosed.
Contact an Attorney
Let the Law Office of Jack R. Sturgill take the burden of legal matters off of your shoulders so you can focus on developing your company. By assisting you with negotiating commercial leases, drafting contracts, or offering counsel as matters arise, the Law Office of Jack R. Sturgill helps ensure that your interests are protected and your liability minimized.
If you have questions about Maryland business law and how it might apply to your particular venture, contact us today and set up a free consultation.