If you run or own a business in Michigan or Illinois, you know that there are times when your work with other entities requires you to share some information about your business that may be sensitive. If you believe this is something you should do, it is important to know how to protect your business so that this sensitive data is not stolen, inappropriately shared or used against you in some way.
As explained by Forbes, a confidentiality agreement or a non-disclosure agreement as it is also called, is a special type of business contract that protects you and your company when you must disclose information to another entity. These contracts can stipulate information shared between the parties must remain confidential and not be disclosed to any other parties. It is important that an NDA be appropriately clear as to what data must be kept private including the format in which the information is shared such as in writing or orally.
Some situations that require confidentiality agreements might include hiring an agency to build a new website as they would have access to some of your marketing strategy. Discussing a potential merger r a buyout with another company may also be a time when you would want to sign a non-disclosure agreement.
If you would like to learn more about how and when a non-disclosure agreement may be important for your company, please feel free to visit the corporate agreements page of our Michigan and Illinois business and contract law website.