How Much Do You Know About Non-Disclosure Agreements?
Non-Disclosure Agreements are quite common, but do you know what they entail and why they are necessary?
A non-disclosure agreement is a contract between two parties which ensures the protection of information from any third party. Non-disclosure agreements, or NDAs, are governed under state law. Generally, NDAs are treated the same across state boundaries but may have specific regulations and standards that vary from state to state.
Non-disclosure agreements can be used to type a plethora of information, including valuable research data, software, intellectual property, prototypes, and customer or client information. These agreements are essential when it comes to preventing unhappy employees from sharing confidential company information or valuable trade secrets.
There are two types of NDAs, unilateral and mutual. Unilateral NDAs only restrict one of the two parties from sharing the protected information, whereas mutual NDAs apply to both parties. Both parties must sign and date the agreement before it is considered enforceable.
Have you ever had to craft or sign a Non-Disclosure Agreement? Was it unilateral, or mutual?