Determining the scope of a non-disclosure agreement (NDA)
includes specifying the permitted recipients of confidential
information. Our business lawyers suggest that to maintain the
protection of confidential information, the parties entering into
an NDA should agree on which individuals, representatives, or
entities are permitted to have access to the information.
Common permitted recipients are directors, employees, partners,
accountants, and financial advisers. Depending on the parties'
discretion, the term may also include financing sources,
subsidiaries, and affiliates. Generally, the receiving party has an
obligation to ensure that all individuals or entities that are
allowed to receive confidential information are informed of the
security standards and terms agreed upon in the NDA. Furthermore,
the receiving party is typically responsible for all unauthorized
disclosures of its agents or representatives.
