Orlando, FL—Non-disclosure agreements (NDA) serve as a great way for a business owner to share sensitive and confidential information with other companies and vendors while keeping their interests protected. Generally, before a company shares any information that is valuable to their business, they would ask the party they intend on doing business with to sign an NDA. An NDA can be tailored to a company’s specific needs and can vary in length.
Examples of When an NDA Should Be Signed
Forbes shared a few examples of when it would benefit a company to have a clear and concise NDA in place, some of which include:
- When inventions or business ideas are being discussed. If a business owner is looking to bring an investor on board or even a partner, they might want to consider having them sign an NDA first before they share their profitable ideas.
- When a new product or invention is being shared. If a business owner or developer is looking to share their new product with a potential buyer or licensee, it might be in their best interest to have them sign an NDA first.
- When sharing marketing tips or other financial information.
NDA’s must be written in a way so that they are understandable and also cover all grounds so that a business owner’s ideas or information is protected from being used by another party without permission. Because NDA’s must be written in a way so that they conform to state and federal laws, it is recommended that business owners have an Orlando, FL business law attorney help them write theirs up.
What happens after an NDA is signed?
Once an NDA is signed, both parties are bound to the terms set forth in the document. For example, if a company were to hire another business to help generate revenue through marketing and an NDA was signed, the company would likely be limited in how it could use the information that was provided to it and could be sued if it violated the terms outlined in the NDA. For instance, if one party took private information from the other for its personal gain, it could face civil action.
When the Terms of an NDA are Violated
As mentioned, if one party violates the terms outlined in the NDA they signed, they could be sued by the party from which they took information from. A civil lawsuit would allow the initial party to sue for damages to make up for any losses the violation caused them to incur.
If a business owner recently learned that a company, vendor, or even employee violated the NDA they signed and are looking to hold them financially responsible for their losses, they can contact Legal Counsel P.A. to discuss this with an Orlando, FL business law lawyer. In the event a business owner is looking to have an NDA drawn up that can provide them with the protection they need when they decide to work with other businesses or investors, Legal Counsel P.A. can assist with this as well.
Legal Counsel P.A. is located at:
189 S. Orange Avenue, Ste. 1800
Orlando, FL 32801
Email: [email protected]