Small Business Non Disclosure Agreement for the United Kingdom

Small Business Non Disclosure Agreement Template for England and Wales

A legally binding agreement under English and Welsh law designed specifically for small businesses to protect confidential information shared with external parties. This document establishes clear obligations for maintaining confidentiality, defines the scope of protected information, and includes provisions for the return or destruction of confidential materials. It provides essential legal protection while remaining proportionate to small business needs and resources.

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What is a Small Business Non Disclosure Agreement?

The Small Business Non Disclosure Agreement is essential when small businesses need to share sensitive information with external parties while maintaining legal protection under English and Welsh law. This document is commonly used during business negotiations, potential partnerships, or when engaging contractors and consultants. It defines confidential information, establishes clear obligations for its protection, and includes practical mechanisms for enforcement. The agreement is specifically tailored to meet small business needs while providing robust legal protection.

What sections should be included in a Small Business Non Disclosure Agreement?

1. Parties: Identification of the disclosing and receiving parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms including 'Confidential Information', 'Trade Secrets', and 'Permitted Purpose'

4. Confidentiality Obligations: Core obligations regarding use and protection of confidential information

5. Term and Termination: Duration of obligations and termination provisions

6. Return of Information: Requirements for returning or destroying confidential information

7. Governing Law: Specification of England and Wales jurisdiction

What sections are optional to include in a Small Business Non Disclosure Agreement?

1. Permitted Disclosures: Specific circumstances where disclosure is allowed (e.g., to professional advisers or when required by law)

2. Data Protection: Specific provisions for personal data handling in compliance with UK GDPR and Data Protection Act 2018

3. Intellectual Property: Protection of IP rights and clarification that disclosure does not transfer ownership

4. Non-Solicitation: Restrictions on hiring other party's employees or engaging with their clients

What schedules should be included in a Small Business Non Disclosure Agreement?

1. Schedule 1 - Description of Confidential Information: Detailed list or categories of protected information and trade secrets

2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information

3. Schedule 3 - Security Measures: Specific security protocols and measures required for protecting the confidential information

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Genie AI

Cost

Free to use
Industries

Trade Secrets (Enforcement, etc.) Regulations 2018: Key legislation implementing the EU Trade Secrets Directive that defines and governs the protection of trade secrets under English and Welsh law

Data Protection Act 2018 and UK GDPR: Legislation governing the processing and protection of personal data, relevant when confidential information includes personal data

Common Law Contract Principles: Fundamental principles governing contract formation, including consideration and intention to create legal relations

Companies Act 2006: Primary legislation governing company operations, including authority to enter into contracts and company information requirements

Restraint of Trade Doctrine: Common law doctrine ensuring that contractual restrictions are reasonable and not overly restrictive on business operations

Copyright, Designs and Patents Act 1988: Legislation protecting intellectual property rights that may overlap with confidential information

Trade Marks Act 1994: Legislation governing trademark protection that may be relevant when confidential information includes trademark-related material

Employment Rights Act 1996: Employment legislation relevant when NDAs affect employees or worker rights

Competition Act 1998: Legislation ensuring that agreements don't create unfair restrictions or anti-competitive practices in the market

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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