A non-disclosure agreement (NDA), also known as a confidentiality or confidential disclosure agreement, is a two-party legal agreement that describes confidential information, knowledge or information that the parties wish to share for evaluation purposes, but which wish to restrict the wider use or dissemination. It is a contract by which the parties agree not to disclose the information covered by the agreement. An NDA creates a confidential relationship between the parties in order to protect any type of confidential information and owners or trade secrets. Therefore, an NDA protects non-public business information and, when the information is disclosed, the victim can invoke a breach of contract. In practice, this means that there is no legislation to seek guidelines in this area and that confidentiality agreements are interpreted in accordance with the common law as specified in the agreement. Whenever confidential information needs to be exchanged between two parties, it is a good idea to use a confidentiality or confidentiality agreement. This agreement will help formalize the relationship and create remedies when confidential information is made public. This document specifies the details of each party, the duration of the agreement and the specific purpose for which confidential information is disclosed. This confidentiality agreement is robust and helps ensure that your confidential business information is not disclosed or made public by the other party concerned. Employment: when disclosing business, customer or business information to an employee or advisor.
An NDA can be used in a large number of situations, for example. B in the following scenarios: Other names for the document: Agreement – Confidentiality, Agreement – Non-Disclosure, CDA, Confidential Disclosure Agreement, Privacy Agreement Inventions: When inventions such as products, recipes or designs are communicated as part of a professional relationship. Transactions: When buying or selling a business, information about employees, trade secrets, customers and other information about it (. B, for example, profits and losses) are passed on to the buyer or seller. When considering a new business relationship, NDAs may be “reciprocal,” meaning that both parties are limited in their use of the materials provided, or they may be “unilateral” and limit the use of the material by a single party. Accounting transactions and information: name and contact information for employees and employers, information on purchases and internal costs, as well as any information on payslips and other financial reports. Marketing information, products and services: information on marketing or product or service development, such as production processes, research, pricing policies and marketing techniques such as advertising. Confidentiality agreements can also be used to protect other types of information between parties. In Canada, most laws regulating confidential information are derived from customs and judicial precedents (common law) rather than laws.