WITH WHOM AND WHEN TO SIGN CONFIDENTIALITY AGREEMENTS?
Confidentiality agreements, also known as NDAs (non-disclosure agreement), are typically signed when two parties wish to exchange confidential information as part of a potential relationship.
Here are some common situations where signing a confidentiality agreement is recommended:
During business negotiations: Before disclosing confidential information to potential partners, suppliers or investors, it is prudent to sign an NDA to protect your company’s interests.
- As part of a professional collaboration: When working with consultants, freelancers, contractors, potential partners or other third parties who will have access to sensitive information of your company, a confidentiality agreement is often necessary to protect this information.
For employees: Many companies require their employees to sign a confidentiality agreement upon hire, to protect the company’s trade secrets and proprietary information.
When selling or acquiring a business: Confidentiality agreements are often used during major business transactions, such as the sale or acquisition of a business, to ensure that sensitive details of the transaction remain confidential.
For the protection of innovations: Companies developing new products or technologies may require confidentiality agreements before sharing details about their innovations with potential partners or investors.
In general, it is recommended that you sign an NDA before sharing confidential information with third parties to protect your business interests and prevent misuse or unauthorized disclosure of this information. The date of signing will depend on the nature of the transaction or professional relationship, but is generally carried out before confidential information is to be shared.
