In business there exist many strategies, plans, methods and trade secrets which need to be kept confidential. A non-disclosure agreement is made between two parties to keep certain information protected and away from a third party’s knowledge. It is also known as a confidentiality agreement, confidentiality disclosure agreement, proprietary information agreement, and secrecy agreement.
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ADVANTAGES OF NON-DISCLOSURE AGREEMENT
IMPROVES CLARITY: The Non-Disclosure agreement involves a detailed description of what can bring to the knowledge of a third party and what not which improves clarity in the minds of parties.
GUARDS THE PARTIES: The parties express their will, rights, and duties in an agreement which reduces the scope of disputes between the parties in the future.
PROOF: It acts as evidence that expresses the duties and rights which the parties have agreed on in maintaining any confidential matters.
CLAIM DAMAGES: Agreement involves clauses that state the compliance with any confidentiality and in case of non-compliance the aggrieved party can claim damages from the other.