If you`re a business owner who`s planning to share confidential information with someone else, you`ll need a non-disclosure agreement (NDA). An NDA is a legal document that prevents the recipient from disclosing your confidential information to third parties without your express consent.
Creating an NDA from scratch can be time-consuming and expensive, which is why many businesses opt for a free sample non-disclosure agreement template. Here`s what you need to know about using an NDA template and what to include in your agreement.
What Is an NDA Template?
An NDA template is a pre-made document that you can modify to suit your specific needs. These templates are often available for free online and can be downloaded in various formats (e.g. Word documents, PDFs, etc.). You`ll generally need to add your company name, the recipient`s name, and any other details specific to your situation.
When to Use an NDA Template
You might need to use an NDA template if you`re sharing sensitive information with someone else. This could include:
– Technical information about a product or service
– Financial information
– Trade secrets
– Customer lists or contact information
– Marketing strategies or plans
By having the recipient sign an NDA, you can rest assured that your confidential information will remain private.
What to Include in an NDA Template
An NDA template should include the following elements:
– Identification of the parties: This section should identify who is sharing the confidential information (the «Disclosing Party») and who is receiving it (the «Receiving Party»).
– Definition of confidential information: The NDA should clearly define what information is considered confidential and what is not. This could include specific technical data, financial information, customer lists, or marketing strategies.
– Purpose of disclosure: The NDA should state why the confidential information is being shared. For example, it might be for the purpose of a potential partnership or to evaluate a business opportunity.
– Obligations of the Receiving Party: This section should outline what the Receiving Party is allowed to do with the confidential information. Typically, this will be limited to using the information solely for the purpose stated in the NDA. It may also include a requirement to keep the information confidential and not to share it with third parties.
– Term and termination: The NDA should state how long the agreement will last and how it can be terminated. For example, it might automatically terminate after a certain period of time or if the purpose of disclosure is no longer relevant.
– Governing law: The NDA should state which state`s laws will govern the agreement in case of a dispute.
Conclusion
Using an NDA template can save you time and money when you need to share confidential information with someone else. However, it`s important to make sure that the template you use is appropriate for your situation and that you include all necessary elements. By doing so, you can protect your company`s confidential information and avoid any potential legal disputes.