A non-disclosure agreement is common in business. It can help you to do business with others or work with employees while also protecting your confidential business information. Also known as a confidentiality agreement, an NDA is something that holds the other person liable if he or she shares your private and protected information. This is obviously very important in business because you do not want your proprietary information out there for competitors to get.
When creating an NDA, you need to be sure you have at least the essential elements that will help to create a binding contract. If your NDA lacks information, it could be difficult to uphold, leaving you no legal remedy if the other party were to break the agreement.
Forbes explains that at minimum you want to be sure to outline the specifics of what you want to protect and how you will protect it in your NDA. Always make sure that you define what it is you will protect and give the scope of confidentiality. You want to be sure the other party completely understands what information the NDA covers.
You also want to include any exclusions. This might be information that the NDA does not cover or situations where the NDA does not apply. Exclusions can also help set boundaries and make the other party aware of when he or she can discuss confidential information.
You also need some basic contract details, such as the names of all parties who will sign the agreement, the length of the NDA and signatures of all parties.