Confidential information is critical to the operation of your company, and keeping proprietary information safe from competitors requires the implementation of various forms and procedures. The two most common ways to do that are through a confidentiality agreement or a non-disclosure agreement (NDA). While both may have the same purpose and intent, they contain fundamental differences you must consider before deciding whether you should utilize a confidentiality agreement vs. an NDA.
Key Takeaways:
- Knowing how to use a confidential agreement vs. an NDA can protect your company against information breaches.
- The appropriate use of the document depends on the purpose and relationship between your business and the other party or parties.
- Legal contracts can safeguard your company against a person or persons who reveal secrets.
- Other contracts can include confidentiality or non-disclosure clauses.
Understanding your company’s options when it comes to protecting your confidential information can mean the difference between having an enforceable contract or not should a party reveal company secrets.
Confidentiality Agreement vs. NDA: Which Works for Your Purpose?
Above all else, you want to maintain a level of privacy when interacting with employees, vendors, contract workers, and any third party with whom you have to establish a business relationship. You will need to exchange confidential information regularly to keep your company running smoothly, so learning how to utilize documents to protect your business appropriately is critical.