Non Disclosure Agreement

Non Disclosure AgreementrnWhat is a Non Disclosure Agreement? rnA non-disclosure agreement is a formal agreement in which one party agrees to give the other party essential information about its business or products and the second party agrees not to share the same information with anybody else for a specified period of time. Non-disclosure agreements are very much in fashion in case of technology companies where the products are mostly developed mutually. A Non Disclosure Agreement is in certain cases used when a company seeks venture capital from some potential financial backers as a method of assurance that proprietary secret are not stolen or leaked to someone else by the prospective investors. rnWhat is the Need of a Non – Disclosure Agreement? rnA Non Disclosure Agreement is generally entered into when two or more than parties consider doing business together and are supposed to disclose proprietary information to each other in order to estimate the potential business relationship.rnType of Non – Disclosure Agreement:rnThere are mainly two types of non-disclosure agreementsrn• Unilateral Non Disclosure Agreement – They should be used when one party will be sharing its confidential information to the other party. rnFor example: If company X is requesting bids for working on a project. The company Y which is soliciting for the work would have confidential information shared regarding the same project but company X will be sharing only that information which is already publically available like its published rates and experience in that field. • Mutual Non Disclosure Agreement – These are the agreements in which both the parties share confidential information that they wish to stay protected. The reasons for the same can be like seeking funds for investment. For Example: If company A & B are planning to enter into joint venture or merger. Then each company will have to disclose the information about their organization and its working. rnWho should sign a Non - Disclosure Agreement?rnAny person, no matter if he is an employee, volunteer or may be a contractor who so ever has access to confidential information or material must sign a Non Disclosure Agreement before accessing any such information or material. rnHow long a Non Disclosure Agreement is Valid?rnUsually, The dates that since when to when the agreement would be valid is mentioned in the contact. However, in case the date since when it will come in effect is not mention then the NDA will come into immediate effect after signing till the contact is valid. Generally, the time period of validity of a Non Disclosure Agreement is 5 years.rnWhat is the confidential information that is protected via Non disclosure Agreement?rnUsually, the confidential information that is protected via Non disclosure Agreement is in the form of intellectual property like copyrights, patents, trademarks, trade secrets, financial information or specialized ways of perfuming business transactions.rnWhat are the points that should be kept in mind while drafting a non disclosure agreement?rnTo make sure that a well-drafted NDA is signed and also understood by those who will be privy to this very sensitive information following points should be kept in mind: • Be specific about what you want to remain a secret: The person signing the Non disclosure agreement need to know that exactly what it is that he needs to keep as a secret. Be Concise and at the same time precise about the secret information so the signing party knows his duties. This makes the drafting of the agreement more crucial part; • Aim of the Non disclosure agreement is not to punish but to prevent: It does not aim at punishing the signing party once he disclose the secret information but the aim is to prevent the secret information from getting leaked; • Mention the Exceptions to the Non Disclosure Agreement: There must be certain times when it will be the duty of the signing party to disclose the secret information all such conditions must form a part of your exception clause. rnFor Example: If an employee need to provide information about the patent to a manufacturer in order to get the patent produced. These sorts of conditions must be provided in the exception clause; • Reserve the right to the confidential information: you should be very clear about the fact that even if the employee is sharing the secret information all the rights to the secret information retain with you; • Remedies in case of Breach of Agreement: Usually, in cases of breach of contract the remedy is in the form of monetary compensation or damages but it can be framed as per the consensus of the parties;rnGeneral Clauses of a Non Disclosure Agreement also include the following: • Representations and Warranties; Definitive Agreement; • Termination of Obligations; • Mutual Non-Circumvention; • Conflict of Interest; • Non – Solicitation; • No Poach; • Amendment of Agreement, Waiver; • Notices; • Third-Party Rights.rnWhy AKT Associates for drafting a Non Disclosure Agreement? rnExpertise-That counts :-The drafting techniques can be minutely understood and used smartly only by an expert so you should always approach an expert for getting your contract drafted to make it more effective and efficient to save you from difficult situations.rnExperience- That Matters:-At AKT associates we have been our client’s obvious choice since more than 20 years. For serving you with the best results we use our experience of decades which has exposed us with deep understanding of these agreements.rnEfficiency-That reflects in everything:- With a strong team which comprises of experts with qualification like CA, CS, MBA & LLB and they will all available with the wholesome result, with dedicated customer service team and support staff. We are always there to execute your work efficiently rnCost- That saves a Lot:-We touch the top position not just because we are the best in what we do but also because we know the value of your time and money. We know the value of your time so all the work by AKT Associates is performed on time and at around 70% less cost in comparison to all the other leading firms of the market that too without compromising on the quality aspect.rnConveniences-That says a Lot: - The services of the firm are performed and delivered by using the cutting edge technology which makes the AKT Associates always available & deliver services right in your email. So it doesn’t matter where you are because we are always at your finger tips. https://aktassociates.com/