When is a non disclosure agreement necessary in business?

[King Belieal]

I have been hearing about Non Disclosure Agreements. Simply put, it is an agreement that places an obligation on the signeees not to tell anyone outside about the details he is about to know.

My question is, what ocassion or happening can warrant a business parties in whatever form to sign Non Disclosure Agreements? When should a business person use Non Disclosure Agreements?

 

[King Belieal]

A non disclosure agreement is also important when you are presenting a business idea to an investor and that business idea is your invention or particular innovation. If you don't sign a non disclosure, the person would just go and run that invention you shared with him or her.

 

[Suba]

Non-disclosure agreements are made because they have economic value, or can be detrimental to one of the parties, such as employees not being allowed to divulge company secrets, which are contained in the employment agreement. Several professions are bound by non-disclosure agreements, such as doctors, advocates, public accountants, etc.

 

[Augusta]

Yes, when you have a business idea you share with another you need to have a non disclosure agreement in place to avoid leakage