The 5 Major Components of a Non-Disclosure Agreement

Tuesday, September 17, 2019

Do you or your company require employees to sign a non-disclosure agreement (NDA) before offering them the job? The answer is almost certainly “yes”.

Infographic 4 Minutes
The 5 Major Components of a Non-Disclosure Agreement

The Social Science Research Network, an academic journal for the social sciences and humanities, conducted a study which found that over a third of American employees have signed an NDA — a document requiring one or more parties to refrain from divulging confidential information to the public.

A non-disclosure agreement is an invaluable tool to have on hand whether you’re conducting business with third parties or simply hiring new employees.

Imagine discussing integral business practices with a new IT candidate during the onboarding process. If you’re worried that a new (or even current) employee might take your sensitive information to a competitor, having them sign a non-disclosure agreement is the first step in preventing staff from becoming your biggest security threat. NDAs help ensure that your proprietary information remains confidential — lest the offenders wish to find themselves in court.

When attempting to draft your own non-disclosure agreement, it can be difficult to know where to start without hiring costly attorneys. However, as the non-disclosure agreement infographic below shows, creating your own NDA is easier than you think.

LegalTemplates explains the key differences between unilateral and mutual NDAs and highlights the key components to include in the doc

Zachary Vickers

Zachary Vickers is a staff writer for Legal Templates, and has served as an editor for a team of investigative and legal journalists.


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