Protect yourself before sharing your great idea with contacts with a
Non Disclosure Agreement
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- Necessary for Business People
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What is a Non-Disclosure Agreement?
All companies have proprietary information that needs to be known by its employees. Not only do companies need to share private information with employees, sometimes information needs to be shared with other companies and individuals as well. How do you think companies share this information? Most information is shared through non-disclosure agreements.
A non-disclosure agreement is a form written by a company or individual that explains that the recipient must keep confidential any private business information that needs to be shared. The agreement must be signed by all who receive the private information. Whoever sees the information promises not to give it to anyone else who has not also signed the non-disclosure agreement. This helps companies keep information secret, while giving others information they need to complete job duties or otherwise have access to confidential information about individuals or the business.
Non-disclosure agreements are written and performed in various ways. They can be used for two parties to view, or they can be written for one or even multiple parties. A majority of the time non-disclosure agreements are used for two parties to share information. Sometimes, a non-disclosure agreement can be from an employee to an employer. These situations are rare but are needed.
In certain situations, the non-disclosure agreement can contain information that is very sensitive and private to the company or person; therefore the agreement must contain certain language that protects the information from being leaked. This is done by putting statements on the agreement that include consequences for the recepient. Therefore, by signing the agreement the receiver is not allowed to tell anybody about what they just read, and if they do, he/she will be held responsible and would be penalized in whatever manner specified.
These kinds of agreements have been around for centuries, and if it wasn’t for them, many companies would have gone out of business. If you ever have private information only your employees should hear, now you know what to do. If you work with a large company, you may see these agreements every day. If you are in need of a non-disclosure agreement, SetupExpress.com can help you today.