Your business is full of confidential information (customer lists, financial records, business proposals) that must remain protected.
For security reasons, you must have nondisclosure agreements (NDAs) when engaging in business with subcontractors.
Here we will examine what an NDA is, why you need NDAs and the best way to manage all the NDAs your business will accrue.
What is an NDA?
An NDA is a legally binding contractual agreement between at least two parties that outlines confidential material, knowledge, or information that the parties may be privy too but wish to keep access restricted.
The goal here is to create a confidential relationship with the subcontractor to keep your business’ data safe.
There are two types of NDAs: asymmetrical and mutual. An asymmetrical NDA is a one-way NDA where only one party is disclosing confidential information. A mutual NDA is best when both parties will be disclosing sensitive data.
All nondisclosure agreements should have these key elements:
- The naming of all parties involved
- The definition of what is to be deemed confidential
- The scope of the confidentiality obligation by the receiving parties
- Any exclusions from confidential treatment
- The full terms of the agreement
Why do I need NDAs?
It would be great to trust each other to “do the right thing” at all times. Unfortunately, we cannot.
Not having NDAs in place to keep your business protected can easily lead to unexpected consequences.
Should your company’s confidential information end up in the wrong hands, it could lead to potentially lost clients and expensive litigation.
Having a subcontractor agreement in place via an NDA helps make sure both sides are crystal clear about what uses of that information are and are not allowed.
Remember, trust isn’t the issue; keeping your business protected is.
How to manage your NDAs
Your business will accrue many NDAs with multiple partners. Furthermore, it is imperative to stay on top of all critical clauses and dates.
Strong contract management can become expensive and time-consuming if you don’t have the right tools.
Zendoc is an AI-powered contract automation platform designed to help your team stay on top of all your company’s contracts. With Zendoc, you can instantly tag all the important dates and clauses of the NDAs to ensure instant access as needed.
Our AI will know to send alerts about every upcoming event, obligation, and milestone so your team will never miss a deadline again! Instant notifications will help your business increase efficiency and boost productivity.
It only takes a minute to sign-up to keep your business protected and give you a lifetime of relief. Let Zendoc bring the zen to your workplace today.