A Non-Disclosure Agreement (NDA) (also known as a confidentiality agreement) is usually the first step in exploring a potential business relationship with a third party.
It is used in circumstances where you give third parties access to confidential information about your business, for example, where you are disclosing confidential information to another business for use in connection with a project that you are considering undertaking together or for the purposes of receiving an investment.
NDA’s can be mutual (where both parties will be disclosing confidential information to each other) or one-way (where only one party will be disclosing confidential information to the other party).
An NDA will ensure that your counter-party is obliged not to share your confidential information with anyone else or use your confidential information for their own commercial gain. Confidential information refers to any business or personal information that is not publicly available, such as budgets, promotional activities, market plans or opportunities, trade secrets, know-how, product information or manufacturing methods.
This Non-Disclosure Agreement contains provisions regarding:
- the nature of the NDA, whether it is mutual or only one party will be sharing confidential information;
- the parties’ obligations when handling this confidential information;
- any circumstance where disclosure of this information will be permitted; and
- disputes resolution.
Become a Strand Sahara member for just £35 a month to access our Non-Disclosure Agreement and many more agreements and templates for your business. Find out more here: Standard Membership