What exactly is an NDA?
A Non-Disclosure Agreement (“NDA”) is a legal contract where one or more parties agree not to disclose confidential information that they have shared with each other while doing business together. An NDA is usually a stand-alone document. However, confidentiality clauses can simply be included in an employment agreement, an independent contractor agreement, or any other type of contract that establishes a business relationship.

Here’s what you usually find in an NDA:
- What information is considered “confidential”
- What information is available and excluded from confidentiality
- The receiving party’s obligations
- Time period that information must be kept confidential

When do you need an NDA?
You may need an NDA whenever you have an employee that knows things about your business or your personal life that you do not want shared with the world. Every time an employee/independent contractor leaves, they are undoubtedly taking information with them. NDAs protect YOU from worrying that they will leak that information to either 1) start their own copycat business with everything they learned from you; 2) take your clients; or 3) disclose personal information about you.

If you decide you need to protect your info with an NDA, check out our contract template HERE.