Sometimes a party attempts to introduce other terms into an NDA, e.B. non-advertising, non-competition, transfer of intellectual property and similar terms. In some situations, this is appropriate. However, it is often more appropriate to enter these obligations into another agreement, whether it is an employment contract, a contractor`s contract, a customer contract or something similar. If your company doesn`t receive confidential information from the other company – and you`re sure it never will – it may not be essential for you to understand how a mutual confidentiality agreement works (although knowledge can always be helpful). If you share information with a person, company or organization as part of a potential collaboration or investment by or with that party, but you are not the recipient yourself or commercially sensitive, of trade secrets, proprietary information or other proprietary information, then a unilateral non-disclosure agreement would probably be the best choice. Your NDA must include a term. When the NDA is created to explore a potential business relationship, it usually has a short duration of about one to five years. If the non-disclosure agreement is part of a larger ongoing agreement, the duration should apply for the duration of that agreement plus a certain period after the end of the relationship (e.g. B, five or ten additional years).
In some cases, a perpetual term makes sense, but you should carefully consider the practical implications for your situation before agreeing to a perpetual confidentiality agreement. The mutual NDA is an agreement between two parties who are about to enter into a trade agreement or other partnership from which both parties will benefit. For such a partnership to be successful, each of the two parties must provide confidential information that may pose a threat to the party in the event of the partnership`s failure. An example of a situation where a mutual confidentiality agreement is required is when a party contacts a technology company with a business proposal for a possible innovation, as both parties must disclose certain confidential information. .