Protection of sensitive information
Confidential agreement is main source to protect the confidential information. Confidential information must not be disclosed to the recipient before signing the agreement. It ensures that recipient will fulfil his entire obligation to keep the information as secret for certain period of time. Confidential information is considered as back bone of the business. It is the information which is not already exists in public domain.
It must be made to ensure the secrecy of the information. It is always considered as best tool to protect your sensitive information. The recipient cannot use the confidential information for their own use. It is always considered as property of the discloser.
Steps for disclosing
Confidential information must not be disclosed at once. It must be disclosed to recipient step by step or n accordance with the requirement of the project. No doubt, it s preserve the information but there is no check and balance to determine whether information is disclosed to any one or not. So, it must be disclosed sensibly. The discloser can sue the recipient on the breach of the agreement. It is the duty of the recipient to make his best efforts to maintain the secrecy. If idea or plan is disclosed before the implementation this will cause a huge loss. Leakage of confidential information is always considered as an irreparable loss. So, you must disclose the information into pieces as per requirements.
It is also known as non disclosure agreement (NDA). NDA provides the legal shelter to secret information. NDA binds the recipient to not disclose the secret information. NDA develops the mutual trust between the parties. It is a tool that ensures the growth of the business. It is a device that gives the confidence to the party that secret information is protected and cannot be disclosed by the other party without his consent. NDA has multiple benefits. It promotes the healthier business environment. It…