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Greenwich commercial and business law attorney

Effectively using business contracts is an essential part of growing a successful small business. A non-disclosure agreement (NDA), also called a confidential disclosure agreement or confidentiality agreement is a contract that prohibits the participating parties from sharing sensitive information. Business owners may use NDAs when disclosing confidential information to employees and consultants, during business sales or purchases, and when meeting with potential investors. However, a non-disclosure agreement is only beneficial when it is executed accurately and does not contain major mistakes. This is why it is best to work with an experienced business lawyer when drafting non-disclosure agreements and other types of business contracts.  

The Basics of Non-Disclosure Agreements

In an ideal world, a business owner would be able to simply ask an individual not to share the sensitive business information to which he or she is privy. Unfortunately, this is not how business dealings work in the real world. The best way to prevent confidential information from being used against a business is to have the party receiving the information to sign a legally binding confidentiality agreement. A business owner may use an NDA to protect:

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Darien non-disclosure agreement attorneyBusiness dealings often involve the exchange of highly confidential information. A non-disclosure agreement (NDA) is an effective way for business owners and entrepreneurs to protect sensitive information from being shared or misused. An NDA is a legally enforceable contract that establishes a private relationship between two or more parties. The involved parties agree not to share or profit from confidential information to which they are made privy. NDAs, also called confidentiality agreements, are a valuable tool for businesses.

Non-Disclosure Agreements For Business Negotiations

Non-disclosure agreements can be used to protect sensitive information that is shared during business transactions, such as the buying or selling of a company. For example, if a business owner is interested in selling his or her company, he or she will almost certainly meet with potential buyers to discuss the business in detail. A potential buyer may have access to proprietary information, product designs, marketing strategies, trade secrets, business practices, and other information that could be used as leverage in other business dealings. Asking a potential buyer to sign an NDA prevents the buyer from misusing sensitive business information or sharing that information with others. If a party signs a confidentiality agreement and then violates the terms of that contract, the injured party has the right to seek financial compensation for breach of contract.

The two most common types of NDAs are unilateral NDAs and mutual NDAs. A unilateral NDA is a contract where only one party agrees not to disclose sensitive information. In a mutual NDA, all of the parties involved agree not to share certain confidential information.

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