When confidential or sensitive information is shared with another business or individual you will require it to remain confidential and not go any further. Protection can be provided by entering into a confidentiality agreement or non-disclosure agreement as sometimes called. This will provide that information which is defined as being confidential is not disclosed and that in the event of breach damages are paid.
The need for a confidentiality agreement should always be considered when talking to a potential partner, consultant or another business. Doing so will hi-lite the value of the information and know how you will be making available. It will allow you to get to know your intended associate better before cementing a long lasting arrangement. Commercial, intellectual, financial and personal information can all be protected. You will use a confidentiality agreement when:
- Selling all or part of a business. A perspective purchaser needs to know details of the business, and you will need to know whether the purchaser is seriously able to proceed.
- You are exploring the possibility of integrating products or processes with another business.
- You are considering a joint venture or partnership and need to know whether the other parties are able to bring to the table what they say.
- You are collaborating on a project and need to know the expertise and knowledge of potential partners.
A good confidential agreement will define what is to be considered confidential information and the protection to be provided. Exempted must be disclosures required by law. It will deal with how the agreement can be brought to an end and the remedies for breach of confidentiality.