A Basic Non-Disclosure Agreement is fundamental to protecting sensitive business information in various commercial relationships. This document is commonly used when parties need to share confidential information during business discussions, negotiations, or potential partnerships. Under U.S. law, it creates legally enforceable obligations to maintain confidentiality and restricts the use of shared information to specified purposes. The agreement typically defines what constitutes confidential information, outlines permitted uses, establishes security measures, and specifies the duration of confidentiality obligations. It's essential for businesses across all sectors when engaging with external parties, from potential investors to service providers, and can be customized based on the specific needs while maintaining core protections under federal and state laws.
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1. Parties: Identification of the disclosing and receiving parties
2. Background: Context and purpose of the NDA
3. Definitions: Define key terms, especially 'Confidential Information'
4. Confidentiality Obligations: Core obligations regarding protection of confidential information
5. Permitted Uses: Allowed uses of the confidential information
6. Term and Termination: Duration of the agreement and termination provisions
7. Return of Information: Requirements for returning or destroying confidential information
1. Non-Solicitation: Optional clause to prevent poaching of employees/clients when protecting business relationships is critical
2. Non-Competition: Optional clause to restrict competitive activities when sharing highly sensitive business information
3. Residual Knowledge: Optional clause addressing use of remembered information, typically used in technology or innovation-focused agreements
1. Description of Confidential Information: Detailed list or categories of protected information
2. Authorized Representatives: List of individuals authorized to receive confidential information
3. Security Protocols: Specific procedures for handling confidential information
Confidentiality Obligations
Non-Disclosure
Permitted Use
Return of Information
Term and Duration
Security Measures
Exclusions
Breach and Remedies
Survival
Assignment
Governing Law
Jurisdiction
Severability
Entire Agreement
Amendment
Notice
No License
Indemnification
Non-Solicitation
Termination
Force Majeure
Waiver
Counterparts
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