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What factors are important in an NDA?

| Oct 12, 2019 | business law

Whether you are an individual employee, contractor, partner or distributor working with a company or you are a representative of a company working with one of those individuals in Indiana, you may be in a position that warrants the sharing of confidential business information. In most cases involving these two types of parties, it is the larger company that must disclose information that it wants to control. There is a special type of contract called a confidentiality agreement or a nondisclosure agreement commonly used to do just this.

As explained by Forbes, any good NDA should very clearly outline exactly what information is to be kept secret and identify if there are any types of information that are excluded from the protections. The contract should also stipulate who information may or may not be shared with and detail provisions surrounding the method of information sharing. For example, information may be allowed to be discussed verbally but not in writing.

NDAs should be in force for a specific duration of time and they should also outline the means by which any dispute between the parties would be addressed. Some confidentiality agreements require the use of arbitration or mediation before a lawsuit is allowed to be filed. This part of the contract may also allocate which party should pay for the costs of settling any disagreement.

This information is not intended to provide legal advice but is instead meant to give people in Indiana some insights into the factors they should evaluate in a nondisclosure agreement before finalizing the terms and signing any contract.