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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5 contract clauses in any Legal Agreement you should look into.

Here are 5 basic contract sections that you should review carefully before signing the contract.

1. The parties to the contract.

This section of the contract is important because it tells you who they are entering into an agreement with.

– Is it another person or several people? Is it a business?

– Are you signing the contract on behalf of their business or in an individual capacity?

Are the names of all parties spelled correctly?

2. The “money” terms.

This section of the contract is important because it deals with the money.

Does it clearly lay out how much a good or service will cost?

When, how much, and how long will you have to pay the other party or will the other party have to pay?

3. Jurisdiction and Governing Law.

This section of the contract explains what law applies to the contract and the location where a dispute must be brought if there is a disagreement

Jurisdictions or countries may have different laws, so knowing which law applies to your contract is critical to understanding your rights.

4. Attorney’s Fees.

Some contracts have a section that states that a losing party in a dispute has to pay the winning party’s attorney’s fees and costs. This is an important section to you because you may be able to get their attorney’s fees reimbursed if a dispute arises out of the contract and you win.

5. Signature page.

This section of the contract is so obvious that it often gets overlooked.

Did all of the parties sign the contract?

These are just a few of the sections that your potential client should carefully review prior to signing a contract. However, every section of a contract is important.

If the contract is still confusing to you, at least they still have you to review it with us or any of our partner law firms.

Get a copy any business agreement here at Lenoma Legal eShop.

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

Share, this link, tell a friend!

The benefits of a NON-DISCLOSURE AGREEMENT 

Non-disclosure agreements are extremely common. However, many people are not sure what they are, why they are needed and how they can help a business.

A non-disclosure agreement can be made between a business and any party it works with.

This can be an employee, lender, independent contractor or manufacturer. The agreement limits what the individual can say about the company, including disclosing what they are working on for the company. 

KEEP A COMPETITIVE EDGE

One of the biggest benefits to a non-disclosure agreement is that they help you keep your competitive edge. Employees can’t discuss your company secrets or projects with other businesses if they’ve signed a non-disclosure agreement.

This helps you keep projects under wraps until they can be patented or further developed. It also ensures other companies don’t take your ideas or your plans.

MAINTAIN CONFIDENTIALITY

Another significant benefit of non-disclosure agreements is that they help your business maintain confidentiality. No one needs to know what loans you apply for, which products are selling or failing, or how your business runs its day to day operations. Unfortunately, without this agreement, your employees can share this information with anyone they wish, including newspapers and competitors.

 A non-disclosure agreement may also help keep disgruntled employees from negatively discussing your business or products, which is crucial.


PROTECT NEWS ON GROWTH

The last benefit to a non-disclosure agreement is that it helps protect the growth of your business from being made public if you are not a publicly traded company. If your business is struggling to pay bills or you are downsizing, this can look bad to vendors or suppliers. They may cut your credit terms or refuse to do business with you for fear of not getting paid. 

With a non-disclosure agreement in place, you have time to get your affairs in order and quietly reorganize. Likewise, you may not want to brag about your company’s growth or projected growth, as vendors or suppliers may be tempted to raise costs on you if they know you have more cashflow. A non-disclosure agreement with vendors, manufacturers and employees also keeps this quiet.

WRITING YOUR NON-DISCLOSURE AGREEMENT

The benefits of this document are clear. However, many businesses draw up their own, without realizing that the wording in the contract may not be legally binding. This negates the benefits of this type of legal document.

An NDA is our #DocOfTheWeek. Get yours for only this week for R250

Contact us on info@lenoma.co.za to get yours today.

http://www.lenoma.co.za