by Aleshia van der Ploeg LLB. (RAU), Director VDP Legal Consulting (PTY) LTD
So what exactly is a NDA? A Non-Disclosure Agreement (“NDA”) is a legal agreement between at least two parties that stipulates that the confidential information that the parties share with one another for certain purposes, may not be disclosed to or must be restricted access to third parties. A NDA creates a confidential relationship between the parties, in order to protect confidential information.
Do I need a NDA in my business?
Sometimes, to move your business forward, you need to enter into relationships with third parties. If you are sharing your business’ confidential information or trade-secrets with such third parties – the answer is YES!
A NDA is an essential agreement for entrepreneurs and start-ups in order to protect their new and profitable idea. A NDA can ensure that you protect your competitive edge; can create trust in business negotiations and will deter theft of intellectual property.
Where does the need for a NDA arise?
There are many situations where the need for a NDA may arise:
when starting a joint-venture;
when employing new employees or freelancers;
when pitching for funding or investments;
the sale or purchase of a business.
What about signing a NDA?
As you and your business grow, you will find that NDAs are very common in the business world. Being asked to sign a nondisclosure or confidentiality agreement isn't a sign of mistrust; it's part of doing business.
In most cases, there's nothing wrong with signing a NDA, as long as you understand and abide by the terms of the Agreement. It may be best to consult with your attorney first before signing such an agreement.
For further information or assistance email aleshia@vdplegal.co.za
Aleshia van Der Ploeg LLB (RAU) was admitted as an Attorney of the High Court in South Africa in 2006. She is a member of the Law Society of the Northern provinces. She has 10 years post-qualification experience in corporate, commercial, labour and general law. She practised as an attorney and served as a Director before forming her own consulting firm. www.vdplegal.co.za | Email aleshia@vdplegal.co.za
More articles by Aleshia...
