NON-DISCLOSURE AGREEMENT ('NDA')

  • An NDA is used to protect the secrecy of a business's confidential information that it shares with others.
  • An NDA prevents unauthorised disclosure of confidential information by the receiver.

EXAMPLES OF CONFIDENTIAL INFORMATION

Examples of of a business's confidential information include its:

  • business/marketing plans
  • customer lists
  • developments
  • innovations
  • know-how
  • financial information

4 SITUATIONS AN NDA IS USED TO PROTECT CONFIDENTIAL INFORMATION

  1. WHEN pitching your business idea to potential investors and sensitive and confidential information may need to be disclosed.
  2. WHEN you want to engage services from others (such as consultants) who will be provided with your business's confidential information.
  3. WHEN you want to work together with another business (eg. joint venture) and confidential information is shared during discussions.
  4. WHEN selling a business, where financial or other confidential information may be shared with the acquiring party.

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Originally published 04 August 2022

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.