Top 5 Risks of not using Non-Disclosure Agreement


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.


      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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