What To Know About Non Disclosure Agreement

If you are considering a business venture that involves the disclosure of confidential information, you should ensure that you understand the pros and cons of a Mutual Non-Disclosure Agreement (NDA). A non-disclosure agreement should include which state laws govern the agreement, how disputes can be resolved (court or arbitration), and who pays attorneys` fees (the loser or each party pays their own). This is especially important if you are dealing with someone who has much deeper pockets than you to avoid being prevented from exercising your legal rights due to overwhelming legal fees. The main advantage of NDAs is the protection of your proprietary information. Any private information that you believe is valuable to your business should be covered by confidentiality provisions. The purpose of entering into an NDA must be mentioned in the agreement, as the intention of the parties entering into an NDA must be clear so that there are no misinterpretations when reading the NDA about the intention of the parties. A confidentiality agreement consists of various clauses and it is up to the parties to add clauses based on their understanding and how they intend to secure their confidential information. When creating an NDA, it should always be borne in mind that the agreement must be clear in terms, neat and short with proper labeling that would catch the eyes of readers. The language used in creating an NDA must be easy to understand and yet foolproof so that there are no other interpretations or misinterpretations of the terms.