Why your business needs a Non-Disclosure Agreement


non disclosure agreement

What Is a Non-Disclosure Agreement?

A non-disclosure agreement (NDA), that is also referred to as a confidential disclosure agreement, is a legally enforceable agreement, through which two parties agree not to disclose confidential information that is covered by this agreement. In addition to not releasing the information, the recipient also agrees not to copy, change, or use the information in any way that is not authorized by the owner.

There are two most common types of the Non-Disclosure Agreement – mutual and unilateral. In a unilateral NDA, for example, one party agrees not to disclose proprietary or confidential information. It is called unilateral because it is a one-sided agreement, in which only one party agrees to keep the information and not to disclose it to the public. A mutual NDA is opposite because there are both parities agreeing not to disclose each other’s information to the public or third parties.

You can create an NDA draft yourself or hire an attorney. If you run your business in the state of Utah, you can always contact Howard Lewis & Petersen and get your consultation with a Provo business attorney.

Why Is an NDA Important?

An NDA has certain benefits for a business, including the following:

  • It protects from the disclosure of intellectual property (proprietary information, trade secrets, and other confidential information)
  • It preserves business relationships. It provides you with real peace of mind because you know that all your information and business relationships are safe. It helps avoid any misunderstandings that may end a business relationship.

What Should Be Included In an NDA?

There are four critical components that should be included in an NDA:

  • The list of participants. All the participants must be clearly listed. You must list clearly the name of your company. Otherwise, your NDA may not be approved.
  • The description of confidential information. It is important to list what confidential information you want to include in your NDA. You need to be as specific and detailed as possible in order to detail the scope of the protected confidential information.
  • Obligation and requirements of the parties. All the obligations of the patients must be listed, especially the requirements of the party that is receiving information.
  • Possible exclusions of the agreement. There are certain situations when confidential information must be disclosed. For example, an employee is required to disclose this information to a third-party service that needs confidential information in order to be able to perform an approved job.
  • Consequences of the NDA’s breach. The consequences of the possible NDA’s breach must be also included. The most common consequences are liquidated damages, termination of a contract, end of an employment contract, costs against the breaching party, award of lawyer’s fees, and others.

Contact Howard Lewis & Petersen Provo Business Lawyers For Help

Creating a strong Non-Disclosure Agreement protects your business and helps avoid severe consequences in case of a breach of confidentiality. Provo UT Business attorneys provide legal advice and guidance about how to use an NDA in your business relationships. Moreover, a Utah business lawyer will be able to help with other types of contracts, disputes, drafting, and other legal terms related to business.

If you live in and run your business in Utah, feel free to contact Provo business litigation attorneys, who will help you prepare both mutual and unilateral NDAs. A business lawyer in Provo is an experienced professional, who will be able to prevent you from any mistakes or misinterpretations. Do not hesitate to contact Howard Lewis & Petersen in order get more information and to schedule your first consultation with a business lawyer Provo.