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The Benefits Of A Non Disclosure Agreement

 

A non-disclosure agreement, also called a confidential agreement, nondisclosure agreement, proprietary info agreement or secrecy act, is an oral contract or component of a business transaction or other legal relationship where one party promises not to disclose sensitive information to another party. In this type of agreement the one who is giving the information cannot disclose it to anyone else for any reason. The person who is being promised not to give out the info must disclose it to the other party before the expiration of the period mentioned in the agreement. It may be voluntary, mandatory or an agreed upon length of time.

 

The subject matter covered in such agreements varies widely. Some of the different categories under non disclosure agreements include trade secrets, inventions, business deals, domain names, corporate secrets, client/agent relationships, financial transactions, and athlete's personal information. In some cases the person who is giving out the sensitive information does not even know what the other person is agreeing to or promising. The non-disclosure document is often drawn up by lawyers on behalf of their client and contains clauses stating that if the other party does not follow through on the promise, that the lawyer will have no legal recourse against the client. Be sure to view here for more details!

 

As with all legal documents it is very important that the person to be bound by the non-disclosure agreement reads it carefully and doesn't hesitate to sign if they haven't understood what it says. If they are going to make changes or agree to one of the terms in the document they should read the entirety of it and understand it completely before signing. If one signer is unwilling to read it in full then the other signatories should consider having a third party involved and sign on their behalf. This third party will be reading the agreement in his or her own time and not bound by the same legal rules as those who have read the complete document. Once the third parties sign the nondisclosure agreement, there is no longer a need to double check the agreement because the other parties have also signed it.Learn more about NDA at https://en.wikipedia.org/wiki/Talk%3ANon-disclosure_agreement.

 

In some cases a lawyer will include a nondisclosure clause within the contract. This is to allow the lawyer to protect information that the client has given regarding their business dealings. If they were to use any information the other person was not aware of and put it into their business, this information may be taken out of context and lead to legal action being taken against the client. If the non-disclosure clause only applies to reports being sent to the office of the accountant, then it would apply to any financial accounts that need to be sent off with the rest of the paperwork for tax purposes.

 

In the situation of a client who is suspected of tax evasion a non-disclosure agreement can act as protection. It states that all financial information that has been supplied by the client will only be used for tax purposes. If the accountant thinks the client has any way to hide information from them, they can request a court order to have it returned. In the majority of cases the courts will accept the information without needing to go to the expense of a full hearing.

 

There are many different types of non-disclosure agreements at www.hayeshunterlaw.com that can be used. In many cases the agreement is entered into so that both parties benefit. One of the benefits can be that it will stop creditors calling the client and getting them to pay off debts. Another advantage can be that it stops the lawyer from taking legal action against the client for tax evasion if they can prove that the client knew about the non-disclosure agreement when it was being drawn up. There are many different ways that the document can be used and the one that best suits the needs of the case should be used.