If you need to discuss the terms of a potential project with a potential client, supplier or business partner, you should consider using a non-disclosure agreement. This page will explain why you should protect your confidential information and how you can create your next non-disclosure agreement.
A non-disclosure agreement is a type of contract which prevents the recipient of confidential information from using it for their personal gain or disclosing it to the public. A non-disclosure agreement needs to define the purpose of the disclosure as information disclosed outside of the purpose will not be treated as confidential. Confidential information will be protected for a term which must be agreed between the discloser and the recipient and will vary based on the strategic value of the information and industry standards. Finally, a non-disclosure agreement can have one discloser (1-way) or have both parties disclose information in which case the agreement is a mutual non-disclosure agreement.
Before entering into a formal commercial arrangement, businesses might prefer to assess a potential supplier or partner with a project or proof of concept. This project can be paid or unpaid and will usually run for less than one year.
When discussing a potential project, it is important to enter into a mutual non-disclosure agreement to protect both parties' confidential information as scoping a project will require sharing sensitive information about each party's business. A non-disclosure agreement is also useful as it will prevent a potential client or suppllier from sharing it with a competitor in the event the project does not materialise.
Whilst non-disclosure agreements are standard, it is important to make sure they contain essential clauses such as the obligations, injunctive relief and survivorship.
To create a robust disclosure agreement which meets your requirements, simply register with Legislate and answer some simple questions. In a couple of clicks, Legislate will build a custom non-disclosure agreement which will allow you to discuss the terms of your potential project with a client or service provider.