Delev & Associates, LLC

When do I need an NDA?

If you have ever been asked to sign a non-disclosure agreement, you may have become aware that the party asking you to sign such an agreement was wanting to protect themselves in some way. That is quite true and was likely because they were about to share with you information that they did not want to have disclosed beyond you. On the other side of things, you should know when the use of an NDA may be beneficial for you to have signed by someone.

Forbes explains that there are many situations that may warrant the use of a non-disclosure agreement, also called a confidentiality agreement. One of these is when you hire new employees. For many people, they will naturally need to know some level of sensitive information about your business in order to do their jobs effectively. For as long as they work for you and even once they no longer work for you, you want to keep this information confidential. Some companies even find it useful to have potential candidates sign an NDA during the recruiting process.

If you are considering the sale of your business or a merger with another company you will want a good confidentiality agreement in place before you commence negotations. Any vendors, contractors or distributors that work with you should also sign such agreements as they will have access to sensitive information.

This information is not intended to provide legal advice but is instead meant to give Ohio entrepreneurs and business owners an idea of the types of situations that may warrant the use of non-disclosure or confidentiality agreements.

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Delev & Associates, LLC
1050 Delta Avenue, Suite 1000
Cincinnati, OH 45208

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