There are many different names for the non-disclosure agreement (NDA); they are also called confidentiality agreements (CA), confidential disclosure agreements (CDA), or even proprietary information agreements (PIA).
These are legal agreements by contract between two or more parties that defines and outlines the confidential materials, information or knowledge base that the parties plan on sharing with each other for any purpose, but restricting the parties from sharing the information with a third party. This type of contract is used for the parties to agree not to disclose any of the items listed in the agreement. An NDA creates a relationship that is completely confidential between the two or more parties to keep any confidential material protected from other parties.
When should an NDA be used?
Non-disclosure agreements in Walnut Creek are most usually signed when two entities are considering doing business with one another and need to understand what the others company does so that they can understand their potential future business relationship. NDA's can be agreements or contracts that are mutual; this means that both parties involved in the agreement are restricted in which materials they use by either provision or by party.
Some employers even require that their employees sign non-disclosure agreements in East Bay to protect trade secrets, information or materials. You should always consult a business lawyer to assist you in the creation of a non-disclosure agreement.
An NDA can be used to protect information that is not commonly known to the greater society. These agreements can also contain clauses that can also protect the employee or person that receives the confidential information so that if they obtain this information from a third party source legally they are not legally obligated at that point to keep the information a secret. So basically the non-disclosure agreement usually only requires that the party that receives the information keep that information secret if it was given in confidence specifically by the disclosing party with which the agreement is held.
Types of Non-Disclosure Agreements
There are two different types of NDAs:
- A unilateral NDA is an agreement where one of the parties wants to give certain information to the other party involved but needs all of the information given to be kept a secret. Most often this is the meet requirements for patent laws or so that the receiving party does not take the given information and use it without the disclosing party being compensated for the given information.
- A bilateral NDA is an agreement that is mutual. Both of the involved parties give information to the other that is to be kept secret. This is the kind of agreement that is used when two or more businesses are considering mergers or any kind of joint business matters.
There are several types of common issues that are usually listed in an NDA and can include but are not limited to:
- Outlining the parties involved in the agreement
- How long the confidentiality in the agreement is to last
- How long the agreement is in effect
- The restricted provisions of data transfer that would be in violation of national security
If you are looking for legal advice or want someone to look over your non-disclosure agreement in Walnut Creek or the East Bay area before you sign anything, than do not hesitate to contact business attorney Armand Estrada to set up a face to face appointment today!