Why do we need a Non-Disclosure Agreement?
Ever wanted to do business with somebody for the first time but hesitant to disclose confidential information?
Want to protect your business in the future by holding your employees responsible for keeping company’s proprietary information or trade secrets as strictly confidential?
then you need to enter into a Non-Disclosure Agreement (NDA) with the person or business to whom you will be disclosing your confidential information or trade secrets.
An NDA eSign executed online over IOUX extinguishes ambiguity regarding the responsibilities and rights of parties and hence leads to lesser disputes by acting as a deterrent to parties from backtracking on their commitment to confidentiality.
What is a Non-Disclosure Agreement?
Non-Disclosure Agreement (NDA) is a written legal contract through which person(s) or businesses commonly, referred to as parties to the Non-Disclosure Agreement, agree not to disclose information deemed confidential. An NDA has become an essential since in today’s cut-throat competitive world, businesses require their trade secrets to be kept very discreet and impenetrable.
- An NDA outlines sensitive or confidential information and binds the parties to certain restrictions regarding its disclosure. It ensures that any new person/ partner/ agent/ distributor/ supplier/ employee/ consultant as may become attached to a business is bound by such terms that make it prohibitive for anybody to disclose trade secrets whether intentionally or inadvertently.
- An NDA also protects a busines with newly attached persons and lets them seamlessly integrate with your organization’s framework, in a healthy environment where with free flow of necessary information, but with a safeguard against the risks of public disclosure of proprietary information.
How does Non-Disclosure Agreement Work?
A legally vetted and appropriate Non-Disclosure Agreement, created i.e., customized and executed online by both the parties creates a safety net and allows for a secure framework through which sensitive information can be exchanged between parties with confidence. It also lays obligations on both sides to adhere to the warranties as committed and details the liability of each party in case of breach. The Agreement becomes legally binding and enforceable in case of breach of either party.