This post may contain affiliate links. See our affiliate disclosure for more information.
As a freelancer, chances are you’ll end up in a situation where you might be asked to sign a Non-Disclosure Agreement (NDA) and it is necessary to know what you might be agreeing to. An NDA is a legal document that protects sensitive information exchanged between two parties, and the prospect of understanding and accepting all of the terms of an NDA might be scary.
In this text, we are going to present a fast course on sorts of NDAs chances are you’ll encounter and why they’re significant. This gives you a greater understanding and the small print you should make an informed decision when signing it.
What’s an NDA?
First, you’ve got been asked to sign an NDA – but do you understand what which means?
NDA or Confidentiality agreement, is a legal document drawn up between two or more parties that prohibits the sharing of confidential data, details or information, similar to business plans, formulas, strategies or processes. The person signing the NDA agrees not to reveal any information shared by the opposite party, even after the connection has ended, and will face serious consequences if the contract is broken.
Varieties of NDAs
There are two foremost sorts of NDAs you might be more likely to encounter as a freelancer: unilateral and multilateral.
One-sided NDA
This form of NDA it is usually used when just one party has sensitive information to share. The opposite party agrees not to reveal the data it receives, but doesn’t have any confidential information of its own to guard. That is the form of NDA you might be most definitely to come across as a freelancer, as clients may ask you to sign for protection and confidentiality.
Multilateral NDAs
That is essentially the most complex form of NDA since it involves multiple parties that exchange sensitive information. Each party agrees to not share the opposite party’s confidential information, and all parties are equally certain by the contract.
When to sign an NDA
Probably the most common situation where chances are you’ll be asked to sign an NDA is when a client desires to share confidential information with you as a part of their project. This may occasionally include a marketing strategy, product formulas or processes, mental property, or another confidential material that they don’t want to make public.
Ultimately, decision to sign the NDA it’s entirely as much as you and depends upon your comfort level and judgment. Please note that confidentiality agreements are legally binding documents and needs to be taken seriously. You may as well ask for clarification if there’s any a part of the contract you don’t understand or feel comfortable with.
Final thoughts
By understanding NDAs and their implications, you may make an informed decision about whether or to not sign one. Knowing what you are agreeing to is one of the best solution to protect yourself and your corporation, and helps be sure that your customer relationships remain skilled and mutually useful.
Keep the conversation going…
Over 10,000 of us are chatting every day in our free Facebook group and we would like to see you there. Join us!