Non-Disclosure Agreement Solicitor

Non-Disclosure Agreement Solicitor

Confidential information often needs to change hands before a deal, investment or commercial project can move forward. The risk comes when valuable information is shared without clear restrictions on what the other party can do with it.

A Non-Disclosure Agreement Solicitor can draft or review an NDA before sensitive information is disclosed. We advise businesses, founders and commercial teams on confidentiality agreements covering negotiations, investment discussions, software projects, new products, business sales and commercial partnerships.

If the information would matter to a competitor, customer or investor, protect it before you hand it over.

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What is a Non-Disclosure Agreement?

A Non-Disclosure Agreement, commonly known as an NDA or confidentiality agreement, sets rules around confidential information.

It can cover:

  • Business plans and strategy
  • Financial information
  • Pricing and commercial terms
  • Customer and supplier information
  • Software and source code
  • Product concepts
  • Designs and technical information
  • Research and development
  • Marketing plans
  • Intellectual property
  • Information disclosed during a proposed sale or investment

A good NDA should identify what needs protecting, who can see it and what they are allowed to do with it.

It should also fit the conversation you are actually having.

A generic document with an extremely wide definition of confidential information is not automatically better protection.

Do You Need A Mutual Or One-Way Nda?

This usually comes down to who is sharing confidential information.

A one-way NDA is generally used where only one party will disclose sensitive information. For example, you may be showing a potential manufacturer a confidential product design or giving a supplier access to internal systems.

A mutual NDA is more appropriate where both sides expect to disclose confidential information.

That often happens during:

  • Joint ventures
  • Commercial partnerships
  • Technology collaborations
  • Acquisition discussions
  • Supplier negotiations
  • Product development projects

Mutual does not necessarily mean identical obligations on both sides. The agreement still needs to reflect what each party is actually sharing.

If you are unsure which structure fits, start with the flow of information. Who is showing what to whom?

When Should You Use An NDA?

Put the NDA in place before confidential information is disclosed.

This often matters at the beginning of a commercial relationship, when everyone is keen to move quickly.

Investment discussions

A founder may need to discuss forecasts, margins, technology, product plans or growth strategy with potential investors.

You do not need to disclose everything in the first conversation. Once genuinely sensitive information is required, the confidentiality position should be clear.

New suppliers and commercial partners

A supplier may need access to specifications, processes, customer information or commercial terms.

The NDA should make clear what they can use that information for. It should not leave them free to use it elsewhere simply on the basis that you voluntarily shared it.

Software and technology projects

Technology projects can involve source code, system architecture, development plans, data and commercially valuable know-how.

An NDA deals with confidentiality. The wider agreement should also cover ownership, licensing, deliverables and payment.

Our business contract solicitors can advise where confidentiality forms part of a larger commercial agreement.

Business sales and acquisitions

Buyers often need access to detailed financial, operational and customer information before deciding whether to proceed.

That information should not circulate without controls around who can see it, why it can be used and what happens if the deal goes nowhere.

What Should An NDA Cover?

The document should answer practical questions.

What information is protected?

What can the recipient use it for?

Who else can see it?

Can it be shared with employees, accountants, lawyers or contractors?

How long must it remain confidential?

What happens to copies when the discussions end?

Which information is not covered?

What happens if confidential information is disclosed improperly?

These points should be easy to understand.

If you need three attempts to work out what a clause means, it is already making the relationship harder than it needs to be.

What Should You Watch For Before Signing An NDA?

Not every NDA put in front of you is reasonable.

Some agreements go much further than protecting confidential information.

Look closely at:

An extremely wide definition of confidential information

The agreement should be clear enough for you to understand what you are expected to protect.

Wording that tries to treat almost every conversation or piece of information as confidential can create unnecessary risk.

Restrictions that go beyond confidentiality

Watch for clauses that restrict who you can work with, which markets you can operate in or whether you can approach certain customers or employees.

Those are different commercial restrictions. They should not be slipped into an NDA without proper consideration.

Obligations that last indefinitely

Some information genuinely needs long-term protection. Other information quickly becomes outdated or publicly available.

The length of the obligation should make sense for the material involved.

Responsibility for other people’s actions

An agreement may make you responsible for disclosures made by employees, advisers, contractors or others who receive the information through you.

You need to understand exactly who you are taking responsibility for.

Unclear rules around returning or deleting information

A requirement to destroy every copy immediately may sound straightforward. In practice, information can sit within backups, email archives or systems that cannot simply be wiped on demand.

The wording should reflect how businesses actually store information.

If someone has sent you an NDA, we can review the terms and tell you where the real risks sit.

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Drop Us a Line

Reach out to us from our contact form and we will get back to you shortly.

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