Wednesday, June 27, 2018 11:37:08 AM
BREAKING DOWN 'Non-Disclosure Agreement - NDA'
NDAs often arise when two companies are about to do business together. The parties are restricted from releasing information regarding any business processes of the counterparty integral to the company's operations. NDAs also may arise between an employer and employee. If the employee has access to sensitive information about the company, he may be asked to sign an NDA when he is hired. This provides an incentive to the employee not to release this sensitive information and avoid a costly legal headache. NDAs also sometimes arise between a company seeking funding and an investor in the company or potential investors, as NDAs are a very common way to protect company trade secrets. This information may include a go-to-market strategy and sales plan, potential customers, a manufacturing process or proprietary software. If an NDA is breached by one party, the other party may seek court action to prevent any further disclosures and may sue the disclosing party for monetary damages.
Read more: Non-Disclosure Agreement (NDA) https://www.investopedia.com/terms/n/nda.asp#ixzz5Jdlqe6Yt
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