Free Non-DisclosureAgreement, also known as a printable confidentiality agreement or NDA form
is widely used by netizens.
As you know, it is nothing but a confidentiality contract
that intends to protect sensitive information like trade secrets or anything
that holds value. Two or more parties can be involved in signing the agreement.
It is very important to get this legal document signed instead of relying on
trust and make a grave mistake.
Let’s have a look at some of the biggest risks associated
with not using an NDA to guard each party’s interest:
Trust is not an issue!
Signing an NDA is safeguarding critical
business information that must not be leaked. It reduces the risks of any
problems that may occur down the road. NDA ensures that things go well on both
ends and sensitive information is kept secret. Each associated party is aware
of their rights and they know what they are allowed to do and whatnot. The fear
of sensitive information being exposed to the third party is reduced to a great
extent.
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You lose rights to your intellectual property
There is no assurance of trade secret to
staying secret without an NDA being signed. It gets vulnerable to be disclosed
and you may suffer great financial loss too. The time and money invested in the
development of data will be in vain. If you don’t sign an NDA, this is all you
have to face.
Information may not be as freely exchanged
Insecurity is experienced if an NDA is not
signed between parties. You feel hesitant to share the trade secrets to the
people. Even the discussions of plans and strategies may not be attempted
freely.
NDA means more Litigation
If sensitive information is exposed to
wrong individuals without an NDA in place, a party may suffer more litigation,
time, and expense to try to protect the information or recoup its losses.
Do you know? If any dispute arises in an NDA then you have an alternative to solve it via arbitration panel instead of the formal court system. This reduces the time and expenses involved.
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Losing out on Business Opportunities
If any party disagrees to sign an NDA then
it is their loss. Some arrogant venture capitalists or investors refuse to sign
NDA because they think that NDAs are not worth the time or money. They may not
want to bind themselves down the road.
Such gesture leaves the concerned parties in
doubt that the denying party may disclose the information.
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