If you are a business owner in California or are in a management position in a company, there may be situations in which you will need to share some sensitive information with another party in order to move your business forward. It can be hard for companies to feel that the only way they can really get work done or advance their positions is to hand out confidential information but that is the reality at times. This is when it is important to have a nondisclosure agreement in place.
As explained by Forbes, an NDA or a confidentiality agreement, provides you with some protection when you must disclose facts that you do not want to be made public or distributed beyond the party with whom you are sharing it with. One use of nondisclosure agreements might be with your own employees as it is natural for some people to have access to information you don’t want available to your competitors but the employees need it in order to do their jobs.
Hiring a vendor, like a marketing agency, also requires you to share key business information and may warrant a contract limiting the vendor’s legal ability to disclose that information to other parties or outlining in what manner the information may be shared.
This information is not meant to provide legal advice but is instead meant to give business owners and leaders an overview of the scenarios in which a nondisclosure agreement may be not only beneficial to their companies but essential to protecting their sensitive information.