A non-disclosure agreement (NDA) is a legally binding contract that formalizes a confidential relationship between two parties. Typically, an NDA is sent by a discloser, the party who possesses sensitive information, and a recipient, who, by signing the contract, agrees to keep the sensitive information confidential. It is also possible for the NDA to be mutual, in which case both parties agree to keep the sensitive information of the other confidential.
You’re likely to encounter such an agreement when starting a business relationship or a substantial financial transaction. Using NDAs in sales operations helps foster trust, guarantees the safeguarding of proprietary data of parties involved and promotes more open and productive discussions, thereby instilling confidence.
Breaching an NDA can result in the termination of contracts or business relationships, with the responsible party potentially facing financial penalties, reputational damage and, in severe instances, criminal charges, especially in cases involving the theft or illegal distribution of critical trade secrets.
Safeguard trade secrets with ready-to-deploy NDAs
Navigating non-disclosure agreements is often a straightforward process. These documents, commonly templated, require minimal adjustments, usually confined to a sentence or two. If changes are deemed necessary, a legal expert steps in to validate the required changes. This simple approach involves opening the template, making adjustments as needed, seeking legal review when necessary and ultimately concluding with a signature.
When companies don’t routinely implement standard NDAs, it can often result in employees and stakeholders grappling with the intricacies of confidentiality agreements on their own. This, in turn, can lead to the (unintentional) leaking of confidential information.
By adopting document collaboration and automation software, organizations can optimize their operations with standardized, ready-to-use NDA templates. Repurposing pre-approved templates for various recipients saves time and effort. Once minor modifications are made to the template, it can be sent over for e-signature using the same software, saving time and the hassle of finding the right version of the document.
- Use Documill Leap to foster internal collaboration on employment contracts, obtain necessary approvals and get each agreement signed digitally. Providing better collaboration and turnaround times while mitigating the risk of errors.
- Need more than just NDAs? Use Documill Dynamo to create professional, high-quality contracts and send them to current customers or prospects for electronic signing as easily.
- Combine Documill Dynamo and Documill Leap for a complete document creation solution.
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