In a world characterized by an ever-increasing exchange of information, non-disclosure agreements play a significant role in business life.For a collaboration between business partners, it is essential to exchange sensitive data, for example know-how, financial data, or business secrets.
However, this can also be accompanied by high risk. Passing forward information to unauthorized third parties can result in considerable damage, such as financial losses, and can also limit and damage the competitiveness of the company. It is therefore essential to conclude legal agreements to protect sensitive information.
So, a non-disclosure agreement (NDA) is essential. It is a contractual agreement aimed at protecting sensitive information from unauthorized disclosure, and it is covered by freedom of contract.
To increase the effectiveness of NDAs, compliance with certain standards is essential:
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- All parties involved must be clearly named.
- The specific information must be precisely defined.
- The duration of the agreement should be specified.
- Possible contractual penalties for non-compliance should be determined.
The correct application of these agreements not only helps to strengthen trust between the parties but also forms a fundamental basis for innovation and growth in a globalized and information-driven economy. Therefore, NDAs serve as an effective tool to minimize the risk of information falling into unauthorized hands.
Feel free to contact us if you have questions about non-disclosure agreement at [email protected]
Fabian Doppler Connect with me on LinkedIn
Fabian, a founding partner of FRANK Legal & Tax, is a German-trained lawyer with expertise in corporate/commercial and real estate law, and litigation, and has been living and working in Thailand since 2005.