Non-disclosure agreements, or “NDAs,” are often
relied upon at the start of a business relationship to allow the
parties to disclose important information while protecting the
confidentiality of that information.
It provides a “safe zone” for the exchange of
important information. Whether you are requested to sign an NDA, or
are requesting another party sign one, you should understand your
obligations, and how the NDA will apply to protect the confidential
information disclosed.
NDAs require one or both parties to the agreement to hold
certain, usually defined, information in confidence. Such
agreements are narrowly drawn, focused in scope and duration and
best used for short-term arrangements. Once parties have determined
they want to pursue a long-term relationship, it is preferrable to
enter a more comprehensive agreement governing additional aspects
of the relationship, and which may include confidentiality
provisions.
