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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Two instances when you need to have an NDA in place

If you are starting or running a business, you understand there are multiple instances when you will eventually have to share confidential business information with third parties. How do you put your worries about intellectual property theft to rest and focus on growing your business? The solution is in having a non-disclosure agreement (NDA). 

A non-disclosure agreement, also known as a confidentiality agreement, is a legally binding document between two parties that prohibits the sharing of confidential information with third parties. A non-disclosure agreement makes a lot of sense when you plan to share something confidential about your business and you want to ensure that the other party does not use that information without your approval.

There are multiple instances when you might want to sign an NDA for your business. Here are two:

When starting a new business deal

Signing an NDA becomes the best option if you are engaging a vendor or a consultant and want to ensure the information you share with them does not end up in the wrong hands. It is also a good idea to get your employees to sign an NDA at the early stages of the start-up to ensure simple things like projected funds and strategies do not get out of the company’s ecosystem. Similarly, you may want an NDA before you talk business with a potential investor or partner.

When starting a new project

Let’s say the new project you are about to start requires the involvement of both internal and external stakeholders. In this instance, it is advisable that you sign an NDA to avoid any claims or ambiguities that may arise during the project’s lifecycle. That can help you create more security around your intellectual property as you move forward.

Trust is an essential component of any relationship. A non-disclosure agreement helps protect sensitive and confidential information from being abused by one of the party’s in the agreement. 

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Bryan E. Kuhn, Counselor at Law, P.C.
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