Hiring employees, freelancers, or contractors.Outline what information is confidential – An NDA classifies exclusive and personal information to avoid confusion.Įxamples of situations when a company uses an NDA:.Protect patent rights – If you intend to share trade secrets, you must take reasonable steps to protect their confidentiality.To protect sensitive information – If you or your company need to protect sensitive data, you can use an NDA, so participants are legally bound not to divulge or release the information to other parties.What Is the Purpose of a Non-Disclosure Agreement?Ī Non-Disclosure Agreement aims to prevent confidential information from being publicly disclosed or used by any parties you share information with.Ī signed NDA sets the legal framework to protect intellectual property and information from being stolen, sold, or shared with third parties, such as business competitors. How to Write a Non-Disclosure Agreement.What Is the Purpose of a Non-Disclosure Agreement?.
