Non-disclosure agreement (NDA) is a legal contract between two parties. This document is concluded for mutual exchange of knowledge or other information with restriction of access to it by third parties. A non-disclosure agreement is an effective tool for protecting valuable information. We use it to prevent leakage of any confidential information, from commercial secrets to personal data. When drawing up a non-disclosure agreement, participants set the following goals:
- oblige the other party not to disclose the confidential information received;
- in case of violation, bring the perpetrators to justice and force them to compensate for the losses.
For complete control over the transmitted information, a non-disclosure agreement must be concluded with any person that is going to deal with your data. This kind of agreement is concluded between organizations. Parties do that if confidentiality is incredibly important for both of them. The non-disclosure clause can be expressed as:
- consent of one of the parties not to disclose the information received;
- a separate document signed by the parties;
- a section in the agreement (a clause on confidentiality and non-disclosure of information).
Why Enter into NDA with VDR Providers?
A virtual data room is a storage for securities. Therefore, such an agreement is of particular importance here. Clauses govern and control the use of data. For the negligence or disregard, the person will have to be responsible. Thus, everyone who works with your data undertakes to adhere to the rules and realizes the level of responsibility. This approach makes it much more troublesome to commit the offense. Those who dared to do that are punished.
When concluding NDA, be careful and concerned. Make sure the language is as simple and understandable as possible. After the parties involved are familiar with the clauses of the contract, ask them to retell the content. That will protect yourself from misunderstandings in the future. Try to avoid sentences that don’t make any sense. The same applies to inconsistencies within the same sentence or between separate clauses. The clearer and shorter the contract is, the more validity and effectiveness it has.