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What is a nondisclosure agreement?

A nondisclosure agreement is an agreement between two parties, which regulates the strict confidentiality of the exchanged information in certain situations where the parties exchange such information.

When do I need a nondisclosure agreement?

A nondisclosure agreement should be signed whenever it is certain that the parties will disclose and exchange information they don’t want third persons to know about. The most common cases are project activities, business negotiations, investment, acquisition or merger activities, etc. 

Do I need a written nondisclosure agreement?

It is highly recommended. If there is no written agreement in a particular case, proving an obligation of confidentiality becomes extremely hard, and you are exposing yourself to potentially significant damages (whether the information is yours or you received the information you haven’t considered confidential).

What is regulated in the nondisclosure agreement?

The agreement regulates, for example: 
  • the parties to the agreement
  •  who discloses and who receives the information (it can also be mutual)
  • the reason for disclosing confidential information
  • what is the confidential information
  • exceptions to the application of the agreement
  • period of disclosure and period of confidentiality
  • consequences of the breach of agreement
  • disposal of information after the disclosure period ends
  • other rights and obligations of the parties

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