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NON-DISCLOSURE AGREEMENT
THIS NON-DISCLOSURE AGREEMENT ("the Agreement") dated this ________ day of ________________, ________.
BETWEEN:
____________________ of ____________________________________________________________(the "Employer")
OF THE FIRST PART
- AND -
____________________ of ____________________________________________________________(the "Employee")
OF THE SECOND PART
BACKGROUND:
IN CONSIDERATION OF and as a condition of the Employer employing the Employee and the Employer providing the Confidential Information to the Employee in addition to other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:
IN WITNESS WHEREOF ____________________ and ____________________ have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.
_______________________________WITNESS: ______________________Address: ________________________Occupation: _____________________
__________________________(Employer)Per:____________________________ (Seal)
_____________________________________________________(Employee)
Last Updated January 7, 2025
A Non-Disclosure Agreement, commonly referred to as an NDA, is a contract that protects the sensitive and confidential information that one party provides to another.
By signing an NDA, the party who receives confidential information agrees to use the information only for permitted reasons and to keep it private from third parties.
This agreement protects the person who is disclosing confidential information (i.e. the disclosing party) from being at a competitive disadvantage or from damaging their reputation. If one party breaches the contract, the other party may take legal action.
There are two parties involved in an NDA:
Depending on the type of agreement, a single party can be made up of multiple individuals or organisations. For example, there may be two individual inventors who act as the disclosing party in an agreement. LawDepot’s NDA template allows you to add as many individuals to a party as is necessary.
People commonly use Non-Disclosure Agreements in situations such as:
LawDepot’s Non-Disclosure Agreement template is built for a unilateral relationship where one party discloses information to another party. In a unilateral NDA, also known as a one-way NDA, only one party is under obligation to keep the information confidential.
For a mutual NDA (wherein both parties agree to share and keep confidential information), each party can use LawDepot’s NDA template to create a unique document for the other to sign.
Confidential information is information that is not common knowledge or known to the public at large. Ultimately, the disclosing party outlines what the confidential information includes. An NDA can protect a variety of information, such as:
Once you establish the subject matter of the confidential information, the disclosing party must describe how the receiving party is permitted to use it. For example, the disclosing party might say that the receiving party must keep the information confidential but can use it to inform business decisions or operations.
An NDA can continue indefinitely or end on a predetermined date.
You can specify a date for the duty of non-disclosure (the responsibility of keeping the information confidential) to end. This date can be when the relationship between the two parties ends, or it can be when the information no longer needs to be confidential.
Also, the obligations created by an NDA can end if the confidential information becomes publicly known (through no fault of the receiving party).
For instance, imagine two inventors enter an NDA with a potential investor. The investor agrees to keep the details of the invention confidential until they can begin manufacturing and selling the new product. If one of the inventors were to give away the secrets of the invention during an interview with a journalist, the information would be considered public knowledge. In this case, the receiving party (the investor) wouldn’t be to blame and the NDA would be voidable.
NDAs often include remedies for a breach of contract, so if the receiving party breaks the terms there is a course of action to follow. As such, this contract acts as a strong deterrent because of the legal action that one party may take if the other violates the agreement.
For example, if the receiving party breaks the NDA, the terms may require them to pay liquidated damages (a predetermined sum of money). If damages are not an adequate remedy, the disclosing party might seek a court injunction that restricts the receiving party from committing or engaging in any act prohibited by the NDA.
Depending on the situation, the disclosing party could file lawsuits such as:
Yes, both parties should sign the agreement.
An NDA doesn’t need witnesses to be valid, but having a neutral third party witness your signatures helps reinforce the validity of the contract.
Sample
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