NonDisclosure Agreements - Frequently Asked Questions(FAQs)
A mutual NDA is a legal document that requires all parties involved to keep certain information confidential. All parties are sharing confidential information and must sign the agreement for it to be valid. Any information the companies share that is covered by an NDA is considered secret and cannot be shared without legal consequence.
A unilateral, or one-way agreement, is used when only one party is disclosing confidential information.
Yes, these are the same type of document. It can also be called a Confidential Disclosure Agreement or Proprietary Information Agreement. The purpose of this document is to protect certain information which is being shared.
Yes, an NDA can involve as many parties as needed. Although it may take more time for an agreement with more than two parties to be settled upon, any number of parties can be included.
Each agreement takes a different amount of time to be negotiated. Some factors that affect the length of the negotiations include how many parties are involved, how many clauses must be adjusted, and the inclusion of governing law, indemnification, and intelletcual property.
Different agreements address the sharing of confidential information. Most agreement names are straightforward in their purpose.
Having a written contract provides proof that you and another party agreed to keep certain information confidential. Each party clearly understands what is expected of them, and consequences are described in case any part of the agreement is violated. Having a written agreement helps prevent misunderstandings.
Each state has its own set of laws. By specifying where your agreement is being made, you are clarifying which rules and regulations each party must follow.
It is important to create a period of time long enough to protect the interests of the disclosing party while not imposing hardship on the receiving party. The length of time you should use depends on what type of information is being shared and in what circumstances. Be careful to create a reasonable length of time, as a court may otherwise find the clause unenforceable.
The non-compete clause prevents the receiving party from beginning or working for a company that directly competes with you. This is another way to protect your confidential information.
