Non-disclosure agreements are legal contracts that oblige two or more parties to preserve the privacy of particular matters involved in the operation of a company. These issues may include trade secrets, procedures, client name and contacts, financial information, among others.
Although this contract is very vital for businesses, many still do not understand its purpose.
Now, let me lay down an example why it is considered so important.
Imagine that your company has been doing various skills enhancement trainings for your employees to ensure that they are continuously improving on their jobs. In these seminars, you might have as well discussed several company secret procedures and confidential information, which are inevitable to foreclose to them.
Also, after staying for several years in your company, your employees may have taken into account about other confidential issues in the business. Without having them to sign non-disclosure agreements, they may have all the means to divulge such vital information to other people or companies – especially if grievances occur on their part.
A non-disclosure agreement can be as precise as a single-paged document wherein both parties indicate an agreement to safe keep the secrecy of particular items. However, there are instances that compel some companies, particularly large ones, to prepare complex and multiple-paged non-disclosure agreements outlining other vital issues in the company operations.
Meanwhile, for those who are about to prepare their own contracts, I do advise you to read an article stating some do's and don'ts in preparing confidentiality agreements. Better yet, have a corporate lawyer to assist you in drafting a legally binding and complete agreement.
Although this contract is very vital for businesses, many still do not understand its purpose.
Now, let me lay down an example why it is considered so important.
Imagine that your company has been doing various skills enhancement trainings for your employees to ensure that they are continuously improving on their jobs. In these seminars, you might have as well discussed several company secret procedures and confidential information, which are inevitable to foreclose to them.
Also, after staying for several years in your company, your employees may have taken into account about other confidential issues in the business. Without having them to sign non-disclosure agreements, they may have all the means to divulge such vital information to other people or companies – especially if grievances occur on their part.
A non-disclosure agreement can be as precise as a single-paged document wherein both parties indicate an agreement to safe keep the secrecy of particular items. However, there are instances that compel some companies, particularly large ones, to prepare complex and multiple-paged non-disclosure agreements outlining other vital issues in the company operations.
Meanwhile, for those who are about to prepare their own contracts, I do advise you to read an article stating some do's and don'ts in preparing confidentiality agreements. Better yet, have a corporate lawyer to assist you in drafting a legally binding and complete agreement.
