Delev & Associates, LLC

Benefits of a nondisclosure agreement

Ohio entrepreneurs and company executives often need to share sensitive information with others either inside or outside of their organizations in order to properly conduct their business and further their interests. But, how can you do this safely without compromising your business or leaving you company vulnerable if this information gets into the wrong hands? Fortunately, there is a way you can help to do this.

Forbes explains that nondisclosure agreements, also called confidentiality agreements, are designed for this specific purpose. You can create these agreements when you need to release information to others if you are entering into discussions about a merger or an acquisition. You might be hiring a vendor to do specific work for you and as part of their ability to do the work, they will need access to some of your company data that you do not want your competitors to know. Some people even have employees sign these agreements to keep intelligence safe while enabling people to do their jobs.

These agreements should carefully define what information is protected but that is not all. A good nondisclosure agreement also identifies protections relating to how information is shared. For example, you may need to protect information that is transmitted verbally as well as in writing. You might also want to specify different forms of written materials including emails as being covered under your contract.

If you would like to learn more about nondisclosure agreements and other contracts that may be valuable to your company, please visit the business contract page of our Ohio business litigation and contract website.

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