A non disclosure agreement is a legally binding contract that protects confidential information between parties. When one or both parties agree to an NDA template, they commit to not disclosing specific details to outsiders. By signing an NDA template, individuals or businesses create a layer of legal protection over valuable information.
A non disclosure agreement template can be adapted for various situations. Companies, freelancers, investors, and private individuals frequently rely on the NDA to safeguard information.
Some of the most common scenarios where a non disclosure agreement is used include:
Not every NDA is the same. Two primary types of the non disclosure agreement template serve different purposes based on the nature of the agreement.
An employee non-disclosure agreement (NDA) protects a company’s sensitive information when hiring new employees. Many businesses require employees to sign an NDA before accessing confidential data, such as trade secrets, customer lists, or marketing plans.
A mutual non-disclosure agreement (NDA) is a contract used when two or more parties share confidential information. Unlike a one-way NDA, which binds only one party, a mutual NDA ensures that all involved must keep the information secret.
This section defines when the NDA contract takes effect and identifies the parties involved.
This Non-Disclosure Agreement (the "Agreement") is entered into on April 15, 2024 (the "Effective Date") by and between:
Alex Carter, an individual registered at 784 Ocean Drive, Miami, FL 33139 (hereinafter referred to as the "Disclosing Party"), and
Jordan Smith, an individual registered at 300 Elm Avenue, Austin, TX 78701 (hereinafter referred to as the "Receiving Party"), collectively referred to as the "Parties" and individually as a "Party."
This section explains why the NDA template is created and what confidential information will be protected.
The Parties intend to engage in the negotiation and sharing of confidential information for potential business collaboration on software development (the "Purpose").
This part explains what happens if the Receiving Party breaches the non disclosure form by disclosing confidential information.
In the event of a breach of this Agreement, the Receiving Party is obligated to compensate the Disclosing Party for damages, costs, and expenses resulting from such a violation. The Receiving Party will also pay the Disclosing Party a penalty of $50,000 for each confirmed case of unauthorized disclosure.
Any notice or communication required under this Agreement shall be delivered personally or via certified mail with a return receipt requested to the above addresses.
If to the Receiving Party: Jordan Smith, jordan.smith@email.com
If to the Disclosing Party: Alex Carter, alex.carter@email.com
This Agreement shall be governed by and construed by the laws of the State of Florida, except for its conflict of law principles. Any action or proceeding related to this Agreement shall be resolved by the courts located in the State of Florida.
A non-disclosure agreement remains legal until it fulfills its goal of protecting confidential information. The standard non-disclosure agreement provided by your client will cover the duration of the project and some time afterward. For example, if you are a designer for a six-month marketing campaign, the agreement would be of the same term because all the materials would be published in that period.
Breaking a non-disclosure agreement may lead to monetary compensation for the disclosing party, legal fees, and other expenses. The possible consequences include:
With a non-disclosure agreement, you can protect any type of information that is in your interest to remain confidential. Non-disclosure agreements most often protect intellectual property, strategic information, financial data, and other information that bring a competitive advantage to a business. In addition, that information must be confidential. You cannot protect information already widely known or that the receiving party got from outside the business relationship.
Contract laws do not discriminate unless you protect publicly available information or want to prevent the disclosure of illegal or immoral activities.