Why you need an NDA!

You might have realised our NDA is free on our website http://www.lenoma.co.za (direct link is here Basic NDA.)

But what’s the big deal about NDAs so how do you use it or for what is it for exactly and how it’ll benefit you?

There are many benefits and advantages for using an NDA:

1) The most obvious advantage of an NDA is protecting your information!

An NDA agreement allows you to agree on what information can and cannot be disclosed to others;

what each party’s obligations are in regards to the confidential information;

and how information is dealt with upon termination of the NDA.

2) An NDA agreement can allow parties to define what “confidential information” is, so that it is clear to both parties throughout their relationship what is considered confidential and what subsequently cannot be disclosed.

What type of information can be considered ‘confidential’ is endless, and it can include anything from patent ideas, test scores, employee information, passwords etc.

Setting out what is included as confidential information can save a lot of time in the event a dispute arises and a lawsuit is brought, as the judge can see whether the information disclosed is specifically listed or described in the NDA.

Drafters of the NDA can be as precise as they wish when defining what is confidential in their agreement by including an exhaustive list of specific items.

Others will want a broader, non-exhaustive list which may include language such as “all information disclosed in the course of fulfilling the purpose of the agreement”.

Drafters can also include exceptions to the prohibitions on disclosure such as information that is generally available to the public;

information obtained by a third party who is not bound by any confidentiality agreements;

where information is trivial;

information developed for the recipient independently;

information disclosed through no fault of the recipient party and information that was already known by the party before signing the NDA.

These exceptions are common in NDAs.

3) A well-drafted NDA will outline the consequences for those that breach the NDA, which will likely include a hefty monetary fine.

The party that breached the NDA can also be subject to a court order preventing them from continuing to disclose any confidential information that was protected by the NDA.

4) An NDA assures parties that information will remain confidential, and can include survival provisions requiring the party to not disclose the confidential information for a stated time period (eg. 2 years) after their relationship has ended.

Takeaways

– If you are considering a business deal, try to have the other party review and sign an NDA before entering into business discussions and possibly exchanging confidential information. The sooner the better!

– Pay close attention to the definition of confidential information before signing an NDA, so you are clear what information (of yours) is protected, and what information (of the other party) cannot be disclosed to others.

Hope this helps you in your business journey!

Team Lenoma Legal

http://www.lenoma.co.za

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Free Basic NDA up for grabs!

So you not sure how this legal document download thing works?

Try this out, download this NDA, find out for yourself how it works.

Not only will you be getting an updated legally binding NDA, you will also get to see our work.

Here’s the link Basic NDA

We offer more legal documents here http://www.lenoma.co.za

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Get your legals, RIGHT!

The problem with most business owners is that they only choose to seek legal assistance when the are in trouble.

And that is the wrong approach, for a couple of reasons:

  1. Approaching a lawyer when only in trouble will most probably increase your costs, more than usual.
  2. Your case will not only be more complex, it might also take longer

Sign  up here for monthly subscription service were you will have access to legal services as and when you need it.

info@lenoma.co.za

http://www.lenoma.co.za

Advertising & Promoting your online Biz – the LEGALS

When advertising and promoting your online business, you should bear in mind that there are legal ramifications of your actions.

By being mindful of the following few common advertising and promoting mistakes, you can make sure that you stay on the right side of the law!

Making misleading and false claims

When marketing your online business and designing your website, you need to ensure that you do not make any claims about your product or service which may mislead clients or create false impressions.

 Below, you will find a list of some common types of false and misleading advertisements that you may unintentionally create.

·      Fine print: while many advertisements do include fine print, the words in the fine print must not contradict the overall message of the advertisement.

·      Comparative advertising: many advertisements compare their product or service to others on the market. This comparison must be accurate, otherwise the advertisement could be considered misleading.

·      Bait advertising: this occurs when you advertise something to be on sale when there is either no, or very little stock available. To avoid being misleading, the advertisement should state that there is a short supply of the good in question.

·      Environmental claims: if you advertise that your product or service is environmentally friendly, you must be able to substantiate this claim.

You can still use very exaggerated phrases, which are referred to as “puffery” These are the types of phrases that no one could treat seriously or find misleading. 

Using Social Media

Using social media is a fantastic way to advertise and promote your business directly to prospective clients. It is your responsibility to ensure that any content published on your social media page is accurate, irrespective of whether you were the author of it. The best way to minimize the risk of using social media to advertise and promote is to avoid making any statement online, that you would not make in any of your other advertisements (such as in print).

You should prohibit others from commenting on your page with misleading claims.

You have the power to remove and reply to comments on your social media pages and should do so if someone is posting misleading statements.

You should bear in mind that social media is a 24/7 operation and that it is your responsibility to monitor your pages.

Spamming

A good way of advertising and promoting a new online business is by sending ‘cold’ messages to potential clients.  You do need to be careful that these messages are not considered spam.

Spamming occurs when you send people spontaneous messages without their consent. . You should only email potential clients who have expressly or implicitly given consent to be contacted. If the client’s email address or contact details are publicly available online and there is no attached statement that commercial messages are not wanted, then this is a form of inferred consent. You should also bear in mind that the subject matter of the message you are sending needs to be relevant to their business

Need more assistance on HOW TO ENSURE THAT YOUR ADVERTISING IS LEGALLY COMPLIANT?

Drop us a mail  at info@lenoma.co.za or visit us on http://www.lenoma.co.za to see how we can help you.

Employee vs Independent Contractor. Whats the difference, though?

Difference between independent contractor & employee

Ever wondered what is the big fuss around the difference between employees and independent contractors?

The main difference between employee and Independent contractor is the nature of the contract itself.

It must be determined what the intention was of the parties to the contract – was the intention that it actually be a contract of employment, or was the intention that it actually be an Independent contractor relationship ?

Employment Contract:

The one contract (employee/employer relationship) is a Contract of Service – the employee undertakes to render his services (as opposed to an agreement to undertake and complete specific tasks) to the employer, usually for an undetermined or understated period of time, in return for which the employer undertakes to pay the employee for those services.

In the Contract of Service (employee contract) the employee is subject to the control and direction of the employer, the employer stipulates what hours the employee shall work, the employer dictates how and when the various tasks shall be performed, the employer provides all the resources to enable those tasks or services to be performed.

The employee is obliged, in terms of the contract, to obey the employer’s instructions and direction is in regard of all the above. In the Contract for Service, the “employer” may dictate a certain date by which the agreed task must be completed, but he would not, for example, be able to instruct the contractor regarding what materials must be used and how the job is to be done.

employee-contractor

employees or contractors? The intention of the parties is KEY!

 

Independent Contract:

The other contract (Independent contractor) is a Contract for Service, and is usually a contract where the contractor  undertakes to perform a specific service or task, and upon completion of the agreed service or task, or upon production of the result agreed upon, the contractor will be paid.

For example, you would enter into a Contract for Service with a person to  paint your house. You would instruct that person regarding what colours you required the house to be painted in, and you would probably stipulate a date by which the job should be completed. You would not, however, instruct the contractor regarding what size paint brushes he must use, or where he should use paint brushes or paint rollers, or what brand of paint to use, and so on. That would be for the contractor  to decide.

The contractor would be free to decide who he seems to your house to carry out the painting, and the would be free to take on painting jobs for other people – even jobs for other people with whom you may have a problem. The Contractor would also decide for himself whether he is going to attend to painting your house every day of the week for the next three weeks, or whether he will attend to your job on only two days of the week or three days of the week, he would regulate how many workers he desires to put on the job, how much he will pay them, and when he will pay them.

The “contractor” would not be free to engage in work for other companies, including companies in opposition to you, he would not be free to regulate his own working hours or days of work, he would not be free to send other people to your premises to carry out the tasks that he is contracted to carry out, and so on.

A Restraint of Trade clause can never be inserted in a true Independent Contractor agreement – it is quite simply unenforceable. You cannot restrain your painter or electrician from taking on other work, or from the painting the buildings of companies in opposition to you. Thus, if you wish the nature of the contract to be that of a true Independent contractor, you cannot put in a Restraint of Trade clause.

For this week, we have INDEPENDENT CONTRACTORS AGREEMENT as #DocofTheWeek, need a valid one?

Get yours here from our legal e-commerce site. http://www.lenoma.co.za/product/independent-contractors-agreement/

Not sure this is for you? contact us on info@lenoma.co.za to schedule a legal consultation for only R450 for 30 minutes TODAY.