Business owners pour their hearts and souls into their businesses. If you own a business or hope to become a business owner soon, it is crucial that you understand how to protect the results of your hard work.
Non-disclosure agreements (NDAs) are business contracts that prohibit parties from divulging confidential business information. NDAs can be powerful legal tools for protecting trade secrets, client information, and proprietary business practices or methods. However, these contracts must be executed properly to be legally enforceable.
Confidentiality Agreements Have a Range of Uses
Non-disclosure agreements or confidentiality agreements are used for many different purposes. When businesses seek new investors, they share substantial information about their business ideas, inventions, and strategies. What is stopping a potential investor from using this information to start a competing business or selling it to another party? This is why many businesses ask potential investors, partners, or buyers to sign NDAs.
...