What is a Generic Non-Disclosure Agreement?

Non-disclosure agreements prevent information from being revealed to third parties.

Non-disclosure agreements, also called confidentiality agreements, are intended to prevent the signer of the agreement from revealing some type of information. Non-disclosure agreements are signed prior to the release of sensitive information to protect that information and outline potential penalties for failure to do so.

Subjects Covered

Most non-disclosure agreements generally cover some type of intellectual property. For example, before an inventor reveals his invention to potential investors he will have them sign a non-disclosure agreement to ensure that they do not try to steal his idea. However, a non-disclosure agreement could cover any number of potential subjects including a restaurant business plan, a website development plan or an idea for a television series.

How Non-Disclosure Agreements Work

Any non-disclosure agreement is really just a promise on your part that you will not reveal certain information that is being disclosed to you. Non-disclosure agreements also elaborate potential penalties for failure to adhere to the terms of the agreement. If you sign a non-disclosure agreement it is important that you not share the protected information or you could be subject to legal recourse.

Elements

A non-disclosure agreement will typically include a definition of what material is considered privileged, a requisite time frame for the scope of the privilege, and potential penalties for failure to abide by the agreement.

References

• Nolo Legal Solutions: Nondisclosure Agreements
• Bitlaw: Confidentiality Agreements

Resources

• Doc Stoc: Non Disclosure Template
• Free Legal Forms: Non-Disclosure Agreement