What Are The Scenarios When A Non Disclosure Agreement Is Needed?

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A Non Disclosure agreement is a formal document which is signed between a receiving party and a disclosing party. A receiving party is one that obtains some confidential information while the disclosing party is one that is ready to reveal that data to the former.

This type of informational exchange generally occurs during a business deal for a possible business transaction. Such an agreement can also be signed by an employee and an employer. It is especially the case in IT sector firms where there is an exchange of sensitive client data. Know about some of the commonest situations where this kind of a contract is needed.

At the time of a product launch

When a company is planning to launch a new product in the market, and it has to show it to some advertising firm, the company would not want that firm to reveal any information about its product before the launch campaign (because direct competitors would benefit from the same).

While buying a franchise

This is another important scenario when this kind of an agreement might be needed. When someone is buying a franchise directly from some reputed brand, he or she is supposed to retain the secrets of the brand in question.

Whether it comes to disclosing sensitive tradable data with outsourcing agencies, employees, lawyers, consultants, suppliers or vendors in all of these scenarios a non disclosure agreement might have to be signed.

For protecting business data and personal information

This type of a contract can also be required in many other scenarios for keeping business information as well as personal details a secret.

These sceneries could include discussing unique idea or a prototype or a plan, or recruiting a worker for a service based agency etc. When someone signs such an agreement, he or she is liable to keep secrets protected - whether or not that person gets the deal. If the information gets leaked in some way, the receiving party can always be sued by the disclosing party for the disclosure of the sensitive details.

Generally, a non disclosure agreement does not mention the nature of the data that must be protected. Instead, it discusses how those details need to be kept safe by the receiving party - whether it drops the deal or that the deal. Please visit this site to get a sample non disclosure agreement template.