Answering your questions on Non-Disclosure Agreements
“When discussing my business venture with professionals in the field, are there general guidelines as to when I should use a Non Disclosure Agreement or Non Compete Agreement to protect my business concept?”
A Non-Disclosure Agreement (NDA) is an agreement where the parties agree to maintain the information they obtain as a result of the relationship confidential from all others. It may even include a provision for monetary damages if that agreement is breached. NDA’s are commonly used in many relationships such as employment, when talking with potential purchasers of your business, or even investors.
A Non-Compete Agreement (NCA) is an agreement most commonly found in employment agreements with high-level employees. Generally, the employer wants to ensure that the employee will not open shop and compete against the employer using information that s/he obtained while working with the employer.
Depending on the nature of the discussions with other professionals and how detailed you will get, an NDA is a great idea. However, before you get so far as needing an NDA, be sure to properly vet the other professional to ensure they are not likely to breach it.
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