NDAs (or non-disclosure agreements) ensure that when sharing information, that the person or organisation you share the information with can not legally disclose that information to anyone else without your permission for the duration of the agreement.

The agreement can last for anything from a few days, to forever – it depends on the circumstances.

Whilst they can be very difficult to enforce, they can still be extremely valuable in protecting your information and intellectual property.

Here are the top 5 reasons why we recommend using them:

1 – Clarify that information is confidential
Ultimately, an NDA is a clear and unequivocal way of saying to someone, “DO NOT SHARE THIS INFORMATION – IT IS CONFIDENTIAL”. It is more powerful than saying it in an email and communicates the importance of the information to you much more clearly.

2 – Deterrent
When you sign an NDA, you know that if you do share that information and it gets found out, then you could be legally responsible for paying financial compensation for breaching it.

Even if enforcement is difficult, there are circumstances where it does happen, and having a legally binding NDA is a strong deterrent to people sharing your confidential information.

3 – Non-Compete
NDAs generally contain terms that the other party cannot use the information shared for purposes other than the reason you are talking in the first place.

This means that if you share your business plans with someone who may want to join your team for the purposes of letting them decide if they want to join, not only can they not share that information with others, but they also cannot use the information for any other purpose. This includes using it to start their own competing business.

4 – Trust and Openness
Once you have an NDA in place, it can help free up conversations. Generally, people do not actually want to take or misuse your information, and the NDA helps to set a tone of trust and openness.

5 – Mutuality

The Legal Sidekick NDA is a mutual one – meaning that all obligations and rights in it apply mutually to both parties, and everyone is on a fair and level playing field.


You can create your free NDA here on Legal Sidekick.

This Basic Training article was written by Legal Sidekick. Legal Sidekick is the legal platform for startups. We offer automated contracts and loads of startup legal resources and guides. For queries on company shares or generally, contact us directly.


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