5 situations that require a Non-Disclosure agreement in place

In business, there are various instances in which you might need to share confidential information with another party. In any case, the way to doing as such safely is ensuring that the other party is bound to respect the confidential information you give them and not use it to your impediment.

When would it be a good idea for you to sign a NDA? As a rule, a NDA bodes well at whatever time you need to share something valuable about your business and ensure that the other party doesn't use it without your approval, or outright steal it. Here are five circumstances that require having a non-exposure Agreement in place.

• Presenting an invention or business idea to a potential partner, investor, or distributor

• Sharing financial, marketing, and other information with a prospective buyer of your business

• Showing a new product or technology to a potential buyer or licensee

• Receiving services from a company or individual who may have admittance to some sensitive information in providing those services

•Allowing employees access to confidential and restrictive information of your business over the span of their job

Having said this, in case you're uncovering a trade secret, which you should do in the rarest of occasions, the obligation to keep up the secret should be an absolute must. This is because once an obligation to keep up the information confidential is gone, then it no longer can be deemed a trade secret. Courts won't protect your right in that trade secret after you've consented to it being publically revealed.