An NDA is one of the most important legal documents for any business. They’re just as important as employee contracts, intellectual property documents, and many other types of documents.
However, many business owners aren’t using them or they simply download a ready to use template from one of the many legal websites that now offer this service.
Unfortunately, it’s not that easy and if you have an existing NDA, you’d want to make sure that you get it checked by a lawyer first before having anyone sign it.
Having your NDA checked by a lawyer first is the only way you can be 100% confident that it’s legally sound and will protect your business just as intended.
- Ensure Your Secrets And Sensitive Information Are Protected
The last thing you want is to have another party you’re dealing with divulging any secrets you or your company has to anyone else. There are certain things that you’ll want to keep a secret and an NDA can help guarantee this.
The kind of information that you should look to keep under wraps is things like trade secrets, how you run your company, and other sensitive information that is crucial to how you run your operation.
This is the core reason why you’d want to sign an NDA. You don’t want the other party you’re dealing with to sign an NDA that isn’t legally watertight, therefore not even giving you adequate legal protection.
In the case that this happens, you’ll find that the other party in question can share whatever they like about your company and you have zero grounds legally to prosecute them.
- Avoid Unnecessary Legal Battles
No business owner wants to end up in a courtroom facing an unnecessary legal battle and let’s not forget the massively expensive legal fees that come with the territory. If you don’t do your NDA right the first time, the legal fees can end up becoming unnecessary and expensive.
Businesses use NDA’s to give themselves a certain degree of legal protection. If you don’t get a valid NDA created first then you may find yourself on the wrong end of a legal battle that could have been avoided if you took some due diligence.
- Know It’s A Valid, Legally Binding Document
If you don’t get your NDA created or at least checked by a lawyer then how can you even be sure it’s a legally valid document?
You can’t. Templates are good. There is no doubt templates and the democratisation of legal services have made it easier for business owners to get an NDA created. However, you need to consider that your business may not be suited to a one size fits all approach. Therefore, these services may not give you a legally valid NDA template.
The only way to really know you’ve got an NDA that is legally binding is to get one that is customised to the unique needs of your business. The only way you can do that is by speaking to a lawyer.
- You’re Dealing With Patents
Your intellectual property is sacred. It can grow your business and explode your profits so you need to protect it.
One of the main reasons why you’d not only want an NDA but make sure it’s checked by a lawyer first is to protect your intellectual property, especially patents.
If you don’t file to protect a patent then it can become public information and this can have a massive effect on the long-term profitability of your business. The only way to protect and guarantee a patent is to ensure that its details are covered under an NDA.
If you’re in a business that requires dealing with patents then it’s a must have requirement to get them covered under an NDA.
- Make Sure You’ve Got The Right NDA
You may not be aware of it but there are two types of NDA’s – one way and universal.
A one-way NDA is only required if you’re disclosing information to one other party but they aren’t disclosing anything to you. You’ll often see these kinds of NDA’s used for outside contractors of a company.
The next type is the universal NDA. This is required when there is more than a one-way flow of sensitive information between more than one party. An example of this would be a joint venture scenario. The idea with a universal NDA is to make sure both parties aren’t sharing each other’s sensitive information publicly.
If you’re not sure if your NDA is written as a one way or universal one then it needs to be checked by a lawyer.
Hopefully, you can now see why an NDA is so important but also why you need to get your NDA checked by a lawyer first before anyone signs it.
If you don’t get it checked beforehand then your business is operating naked, without proper protection. You’ll face unnecessary and costly legal fees. And you’ll never know if your sensitive information is actually protected in the eyes of the law.
There is only one way to find out if your NDA is legally sound and it’s by getting a lawyer to go over it first. If you’re still unsure about your NDA then get in touch with us today.