Confidentiality agreements and non-disclosure agreements (NDA) can prove to be very valuable documents used when developing a concept or business idea.
What is a Confidentiality Agreement or Non-Disclosure Agreement?
A confidentiality agreement as the name states is an agreement between at least 2 parties. The agreement stipulates and / or includes what information may NOT be disclosed to other parties and ultimately creates reassurance between the parties that any information disclosed between them will remain confidential.
When is Confidentiality Agreement or Non-Disclosure Agreement used?
An NDA is typically used when 2 businesses or companies consider doing business or some form of project or transaction together. Given that we build custom websites and database solutions, we have very often been asked to sign non-disclosure agreements to ensure that we do not:
- Take the idea and build the same concept
- Disclose information outside of Mammoth Solutions
Using an NDA when discussing projects provides clients with reassurance that a company or party can be trusted and that they have a legal backing should their idea “leak out”.
What should be included in an NDA?
- Information on both parties
- Details on what IS confidential and not to be disclosed to other parties
- Details on what IS NOT confidential and may be discussed. This is not always included, but can be useful in situations where parties need to outsource certain responsibilities.
- Period that the information must remain confidential e.g. 5 years, 10 years, etc
- Period that the information disclosed is “binding”
Where do I get a NDA from?
There are free downloadable NDAs available online. We, at Mammoth Solutions, are also happy to provide potential clients with a copy of our standard non-disclosure agreement.
If you plan on building a website that is highly sensitive, it may be best to even consult a lawyer / attorney to ensure you cover “all your bases”.
This is a very rough outline on the purpose and use of a NDA. More research and information is widely available on the internet. In summary, we would suggest a confidentiality agreement with any project that is a new concept or contains sensitive information.