A non-disclosure agreement is an agreement that is made legally in order to protect a business owner from any kind of possible loss caused by other parties outside of the company that work together with the company. This kind of relationship between the company and the parties outside is done for the sake of getting help to make the company business runs easier. Unfortunately, the relationship between them causes the parties outside of the company to understand crucial information about the company. This is how the non-disclosure agreement template becomes an obligatory for the two parties to make so that the company’s new innovations or new marketing strategy will not be shared to others or be used by the parties themselves to compete the company.
Information to be Included in the Agreement
Just like other legal agreement between a company and the third party, there is some crucial information to be written out in the agreement.
• The effective date of the agreement, which makes it clear that starting from the date the third parties will treat and keep whatever information related to the company and its business as a top secret. There is no possibility of telling other people about the information or use it for their own purposes.
• The name of the company owner and the name of the third parties that will be bound by the agreement. It is also important to write clearly the position of the parties in the agreement, which represents the third parties’ duty in the company and why the company needs their participation.
• The confidential information, which actually covers all the top secret that the company has but are shared with the third parties in order to make them do their duties in the company easily.
• The protection of the confidential information, which states in detail about the attitude and the action that the third parties should do and should not do in order to ensure that the top secret of the company will remain top secret.
What is included as the confidential information?
There are various things that can be the confidential information for a company, which require agreement for the sake of protection.
• All the records of the company business and plans
• The company statements related to finance
• Any technical information related to the company
• The company records related to its customers information
• Any kinds of invention and new idea related to the company products, designs, and marketing plan.