Do you know what to do when asked to sign an NDA?
27/06/2019 1:49 PM by
Signing contracts - A Non-Disclosure Agreement (NDA) also known as a Confidentiality Agreement can sometimes have a lot of legal implications and you should be careful before signing one.
The correct process if you have access to a legal resource would be:
- Browse over it to see if there are any issues you can pick up (So you can learn)
- Give it to your legal guy(s) to review and make their comments
- Send feedback from the legal guys to the client
- Make changes to the document as requested by the legal guys and agreed to by the client
- Sign document
If you don't, then look out for these three potential tripping points:
- Specific damages (e.g. $1,000,000 per breach)
- Funny jurisdiction (at least it should be in the country you are in)
- If the agreement is not mutual you need to be extra careful. One sided agreements makes one of the parties lose out
- Always request that any indemnity be deleted
Do you feel this rule needs an update?