Non Disclosure Agreement (NDA) is a confidentiality agreement signed by companies involved in a partnership. UMCIC utilizes this practice to ensure mutual benefits in promoting a healthy and efficient partnership.
This agreement involves preserving the secrecy of valuable information, materials and knowledge related to business and daily operations between companies. The distribution of information stated is limited between parties are that bound to the agreement but no disclosure to any third parties.
Types of information which is regularly subjected to NDAs are normally vital in ensuring healthy growth and maintaining stability of a company as well as preserving any forms of partnership. Examples of such information includes financial data, list of clients, innovative “know how”, business strategies and computer software codes.
Types of NDAs
NDA state that recipients are obliged to maintain the confidentiality of the relevant information and limit its use. Under local law regulations, information recipients must not breach the confidential partnership or prompt other parties to disregard it. Any breach of contract could lead to legal actions such as seeking a court order to halt disclosure of information from an irresponsible party and filing a lawsuit for damages.
Time period of NDA depends on the negotiations between both parties.