What is a Non Disclosure Agreement?

In Contracts, Non-Disclosure (NDA) & Confidentiality Agreements by Don KochersbergerLeave a Comment

Non-Disclosure Agreements

Why do you need a non disclosure agreement?

In the everyday operations of your business, many of your employees are exposed to sensitive information about your company and your clients. This information is vital to the day-to-day operations of your business. If lost or misused, the information might cause problems for your business.

By implementing a non-disclosure agreement, or confidentiality agreement, you can set rules to protect information that helps your business run smoothly from being used in competition with you. A non-disclosure agreement is a contract between an employer and an employee that states that any information that is acquired at the company (client lists, trade secrets) cannot be used in competition with the business. That means that your employee will not be able to share information with a competitor, start their own business, or generally use the information to their own advantage, based on the terms you set.

Why Do I Need One?

The answer is simple. Certain information is vital to the success of your business. For example, your client list and spending history holds a great deal of information. What would happen if a trusted employee took that information and decided to try and take your biggest client? If they were successful, your company would have lost a top customer and a competitor would be welcoming the new revenue.

Having a non-disclosure agreement between you and your employees protects that information from being used against you. So, if your salesperson with all this information leaves your company, you can feel comfortable knowing that they won’t try to take your biggest clients. If they do, you can pursue legal action against them.

Protect Your Assets with Business Law Southwest

At Business Law Southwest, we can help you establish and enforce non-disclosure agreements. Contact us today so we can help you protect your business!

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