Armstrong & Associates Employment Law Firm

Avoid these mistakes when drafting your company’s NDA

Sometimes the success or potential success of a business is dependent on trade secrets and confidential information about the business. Many of the top companies use non-disclosure agreements (NDA) to protect their sensitive data from industry competitors and the public as well.

To protect your company’s proprietary information, it is imperative that you draft an airtight NDA. Otherwise, the agreement may not be enforceable in the future.

What are some common NDA mistakes?

Before drafting an NDA for your company, you might want to work with a manager or lawyer that has experience with this type of contract. Any mistake can invalidate the agreement and understanding the most common mistakes can help you avoid any mishaps. Some common NDA errors include:

  • Unclear definitions: Each NDA needs to clearly define what information is confidential. If your company’s NDA has an ambiguous definition, it may be difficult to enforce the agreement later on.
  • Incorrect company listed: The NDA may be voided if there are any inconsistencies between the other party’s legal name and the name included in the agreement.
  • Unreasonable duration of agreement: To ensure your NDA is airtight, you may want to be specific as possible about how long the deal needs to be active. The length of the contract and any non-compete clauses cannot be unreasonably long as well.
  • Improper person authorizing NDA: Another way for your NDA to be voided is to have an unauthorized person sign the document. Some companies also require multiple people to approve the agreement.

NDAs may be able to help your company’s proprietary information a secret. However, one mistake could potentially invalidate the entire document. With this in mind, you might want to seek out the help of an experienced attorney. Your attorney will have experience writing NDAs and can ensure there are no errors or loopholes in the document.


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