Things you Should Know Before Signing an NDA

by | Apr 15, 2021 | Law, Legal, Legal Advice | 0 comments

Entering into an NDA is a serious matter. It may just seem like a flimsy document, but it’s legally binding. Once you sign your name, you absolutely must adhere to the guidelines previously agreed upon. That’s why it’s important to do your research and weigh your options before committing to it. Take your time and consult with an attorney at Davis, Ermis, and Roberts before finalizing your decision. Below, we’ll explain what an NDA is and what you need to know about it. 

What is a Non-Disclosure Agreement (NDA)?

A Non-Disclosure Agreement is a legally binding document between two or more parties that guarantees all will keep the relationship, event, or information confidential. It’s also commonly known as a confidentiality agreement. This is generally used by celebrities, researchers, businessmen, and people in other fields that require a certain level of discretion. NDAs are great for people who need to exchange information without risking it falling into the wrong hands. 

What Should be Included in an NDA

One of the highly qualified attorneys at Davis, Ermis, and Roberts can draft a comprehensive Non-Disclosure agreement for you or your company. We can also provide you with specialized legal counsel before drafting or entering into an NDA agreement. Generally, a non-disclosure agreement consists of these six key elements.

  1. The names of all interested parties
  2. A definition about what information is considered confidential
  3. All potential exclusions from confidentiality
  4. Statement regarding how information may be used
  5. A time period for contract validity
  6. Any other relevant provisions

Why Use an NDA?

Typically, people utilize Non-Disclosure agreements for three main reasons. Protective agreements help safe keep trade secrets and important information from the public and competitors. Contractual agreements are typically drafted prior to moving forward with business deals. A strategic NDA is typically used as a test, to gauge someone else’s interest.

Questions you Should Ask Before Signing an NDA

  1. What is the scope of the Non-Disclosure agreement? Make sure that the agreement won’t hinder your ability to perform your work and that the language isn’t too broad. This kind of contract works best with a lot of specificities.
  2. What are the consequences of breaching the NDA contract? This document is legally binding so it’s important to understand what consequences you face. You may be fired, be responsible for monetary damages, or face jail time. You should be prepared to face any of these even if you accidentally disclose information to an unauthorized person. 
  3. Can I make modifications to the NDA Agreement? It’s important that you are given the chance to give your input. This is a serious legal document, and you should only sign something that also fits your needs. 

Davis, Ermis, & Roberts

The legal team at Davis, Ermis, and Roberts has been practicing for more than 35 years and has acquired extensive knowledge and experience surrounding Non-Disclosure agreements. These are intricate legal contracts, but with our legal expertise, we can draft a document that is agreeable to all parties. Schedule a consultation with us to review your options and to learn more about Non-Disclosure contracts and how they may benefit your business.