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Know when to use an NDA

If you are the owner of or an executive in a company in Texas, you will likely find yourself in situations that require you to disclose sensitive company information. You will no doubt feel hesitant about doing this but the good news is that there is a way to protect your business in these times and that involves the creation of a nondisclosure agreement.

As the name implies, a nondisclosure agreement is a contract that binds another party or other parties to keep select information private. In addition, an NDA may be written so as to prevent the other parties from finding ways to benefit from the information you must share with them. 

As explained by Entrepreneur magazine, it may be wise to even have your employees sign NDAs as many of them will have access to sensitive data. In addition to using confidentiality agreements internally, many external parties may be requested to sign these contracts. Examples include vendors that will provide services to your company that require them to know some confidential information in order to do what you are hiring them to do. Potential buyers or investors will need to know some financial or other strategic plans that may be protected by an NDA. 

If you would like to learn more about how a nondisclosure agreement can protect you and your company and what types of provisions you should include in a contract, please feel free to visit the confidentiality agreement page of our Texas business and contract law website.

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The Kruckemeyer Law Firm
919 Milam Street
Suite 1500
Houston, TX 77002

Phone: 713-364-0148
Fax: 713-222-2226
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