Writing a non-disclosure agreement (NDA) is essential for protecting confidential information shared between parties. Here’s a structured guide on how to write an NDA:

1. Introduction

  • Title: Non-Disclosure Agreement (NDA)
  • Parties: Identify the parties involved (disclosing party and receiving party).

2. Definitions

  • Confidential Information: Define what constitutes confidential information. This can include proprietary data, trade secrets, business plans, customer lists, etc.
  • Exclusions: Specify information that is not considered confidential (e.g., publicly known information, information independently developed by the receiving party).

3. Obligations of Receiving Party

  • Confidentiality: State that the receiving party agrees to keep the confidential information confidential and not disclose it to third parties.
  • Use: Specify that the receiving party will only use the confidential information for the purpose outlined in the agreement.

4. Permitted Disclosures

  • Exceptions: List circumstances under which the receiving party may disclose confidential information (e.g., with prior written consent, pursuant to a court order).

5. Term of Agreement

  • Duration: Specify the period during which the NDA remains in effect. Typically, NDAs are valid for a certain number of years after the disclosure of confidential information.

6. Miscellaneous Provisions

  • Governing Law: State the jurisdiction and laws that govern the agreement.
  • Severability: Ensure that if any provision of the NDA is found invalid, the rest of the agreement remains enforceable.
  • Entire Agreement: Clarify that the NDA constitutes the entire agreement between the parties regarding the confidentiality of information.

7. Signatures

  • Execution: Include signature lines for both parties, along with the date of signing.

Tips for Writing an Effective NDA:

  • Clear Language: Use clear and concise language to avoid ambiguity.
  • Specificity: Be specific about what information is confidential and how it should be protected.
  • Legal Review: Consider having the NDA reviewed by legal counsel to ensure it complies with applicable laws and adequately protects your interests.
  • Mutual NDAs: If both parties will be sharing confidential information, consider using a mutual NDA where obligations are reciprocal.

Example Non-Disclosure Agreement (NDA) Template:

This Non-Disclosure Agreement ("Agreement") is entered into as of [Date], by and between:

Disclosing Party: [Name of Disclosing Party], a [State/Country of Incorporation], with its principal office at [Address] ("Disclosing Party"), and

Receiving Party: [Name of Receiving Party], a [State/Country of Incorporation], with its principal office at [Address] ("Receiving Party").

Recitals:

  1. Purpose: The Disclosing Party possesses certain confidential and proprietary information (the "Confidential Information").
  2. Protection: The Receiving Party desires to receive and evaluate the Confidential Information for the purpose of [describe purpose, e.g., evaluating a potential business relationship], and agrees to maintain the confidentiality of such information.

Agreement:

  1. Confidential Information: For purposes of this Agreement, "Confidential Information" includes all information disclosed by the Disclosing Party to the Receiving Party, whether orally, in writing, or electronically, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.
  2. Obligations of Receiving Party:
    • The Receiving Party agrees to use the Confidential Information solely for the purpose of [describe purpose, e.g., evaluating a potential business relationship] and not for any other purpose without the prior written consent of the Disclosing Party.
    • The Receiving Party agrees to take reasonable measures to protect the confidentiality of the Confidential Information, including but not limited to measures to prevent unauthorized access, use, or disclosure.
  3. Exceptions: The obligations set forth in this Agreement shall not apply to any information that:
    • Is or becomes publicly known through no fault of the Receiving Party;
    • Is independently developed by the Receiving Party without use of or reference to the Confidential Information;
    • Is rightfully received from a third party without breach of any obligation of confidentiality;
    • Is disclosed by the Receiving Party with the prior written consent of the Disclosing Party; or
    • Is required to be disclosed by law or court order, provided that the Receiving Party gives prompt notice to the Disclosing Party to allow for a protective order or other appropriate remedy.
  4. Term: This Agreement shall remain in effect for a period of [number] years from the date of its execution by both parties, unless terminated earlier in writing by either party.
  5. Return or Destruction of Information: Upon termination of this Agreement or at the Disclosing Party's request, the Receiving Party shall promptly return or destroy all copies of the Confidential Information in its possession or control.
  6. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
  7. Miscellaneous:
    • This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral.
    • No modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.
    • If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Non-Disclosure Agreement as of the date first above written.

[Name of Disclosing Party]

By: __________________________
Name:
Title:
Date:

[Name of Receiving Party]

By: __________________________
Name:
Title:
Date:

This template provides a basic framework for a Non-Disclosure Agreement. Make sure to fill in the blanks with specific details relevant to your agreement and review the document with legal counsel to ensure it meets your needs and complies with applicable laws.

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