Business & Employment Law Attorney
866-693-5541 | 303-424-4286

How to create a proper NDA

Businesses in Colorado and throughout the nation may use a non-disclosure agreement, or NDA, as a way to protect confidential information. However, in some cases, it is better to not disclose it at all. It is also important to consider which party or parties will be disclosing such information. If only one party is going to be releasing confidential information, a one-way NDA may be appropriate.

Such an agreement only binds the party receiving information to refrain from disclosing or otherwise using it for their own gain. Ideally, the agreement will be narrowly construed by the receiving party to decrease the risk of violating it. Generally, exceptions will be made if any information received was already public knowledge, was already known to the receiving party or was developed independently by the receiving party. If both parties to a deal with be disclosing information, a two-way NDA can be created.

Regardless of what type of agreement is reached, it is important to understand that it must protect a legitimate business purpose. In some cases, the NDA will only be enforceable for a certain amount of time. It is also possible that the NDA will have terms requiring that any party who receives information will have to return it when the business relationship ends or when the NDA expires.

During business transactions or any other type of cooperative activity between companies, it may make sense to use an NDA. It might be a good idea to have an attorney either draft the agreement or review its terms. This may increase the chances that the arrangement is in a company's best interest or the interest of its owners. Generally speaking, the agreement is legally valid and binding once it is agreed to by all relevant parties.

No Comments

Leave a comment
Comment Information
  1. "I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed."
    - L.H.

  2. "Everyone at the firm was professional, responsive and courteous. Kate was exceptionally knowledgeable and responsive and she helped me to achieve the desired outcome. I would definitely recommend this firm if you are in need of superior legal assistance."
    - J.S.

  3. "Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication."
    - N.S.

  4. "Kate & team were very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help."
    - D.L.

  5. "Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business."
    - T.Z.

  6. "Working with Bryan was amazing. His professionalism made a very stressful and difficult challenge as positive as possible. A great lawyer"
    D.K.