NEGOSENTRO.COM | The 2 Types of NDAs & The 5 Major Components to Include | Think about when you were hired on at your previous job. Were you ever asked to sign a non-disclosure agreement (NDA) before being hired? Chances are you were.
According to a study by the Social Science Research Network, over one-third of American employees are under the purview of a non-disclosure agreement — a document which involves one or more parties agreeing to withhold information from the public.
In relation to the job interview, signing an NDA typically means that an employee agrees not to disclose any valuable or sensitive information that they may learn about the company over the course of their employment.
However, an NDA isn’t exclusive to the hiring process. Anyone from an entrepreneur or small business owner to a talented inventor should consider using a non-disclosure agreement when discussing their business with others.
Imagine you’ve just invented the latest, greatest new gadget. You’re interested in finding an investor for your creation, but you’re worried about the possibility that they might steal your idea. Having them sign a non-disclosure agreement will help protect your proprietary information and ensure that they keep that information confidential.
When attempting to create your own NDA, it can be difficult to understand where to begin without getting expensive lawyers involved. The confusing legal jargon, the multiple NDA types, knowing what to include or when to use one — it all seems too complex for a layman to grasp. But, as the non-disclosure agreement infographic below shows, the reality of drawing up a comprehensive NDA is incredibly simple as long as you keep a few key ideas in mind.
