While operating your business in Texas, you may want to share sensitive company information with an employee or someone else. To maintain confidentiality, you could have the other person to sign a non-disclosure agreement.
If you have little to no experience with NDAs, let Forbes help you draft a proper document. Protect your ideas, vital information and the future of your business.
Non-mutual and mutual NDAs
If only one person shares confidential information, then parties may enter a one-sided agreement, also known as a non-mutual agreement. If you and the other individual agree to exchange sensitive details, then you want a mutual agreement. No matter which agreement fits your situation, be upfront about your expectations regarding the exchange of information.
Parties to the agreement
Once you decide on the agreement, name the parties in your NDA. As the person providing information, you act as the disclosing party. The person receiving the details is the recipient. Think about whether the recipient may share your information with a partner, affiliate or agent. It could make sense to include a third party on your agreement.
Extent of responsibility
To protect your legal rights should your business situation curdle, define the recipient’s confidentiality responsibility. For instance, what reasonable steps do you expect the recipient to take to protect your information from others? Your NDA must also specify that the other party cannot use your shared information for personal gain.
Defining confidential information
To avoid misinterpretation and confusion, include your definition of confidential information in the agreement. You may deem only written information as confidential, or you may classify both written and oral information as confidential. Either way, make your meaning clear in the agreement.