3 things to look for in your NDA Agreement
Confidentiality – Confidentiality is the most important clause in any NDA. It details what information the two parties will keep confidential.
If you are hiring a contractor, you won’t want them to share sensitive information about your company. And if you are signing an NDA with a contractor, you don’t want them to share proprietary information about their methodology or other intellectual property.
It’s important to note that this doesn’t just apply to software solutions. It applies to all proprietary information, including what you look like in your office, the features of your product, and how many users you have.
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Expiration Date:-
- NDAs generally have an expiration date. This is the date on which the contract will terminate and neither party will be bound by any of the terms listed. This is helpful because it means that you can work with the contractor without having to worry about the NDA indefinitely.
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Penalties for Violation –
- It’s important to note that breaking an NDA doesn’t automatically end in a lawsuit. However, most NDAs will outline a penalty for violation of the contract. Sometimes this is just an agreement to stop working with the contractor. Other times, it’s a larger fee or payment.
3 more things to be aware of when signing an NDA
Make sure that you’re signing an NDA with the right person or company. It may seem obvious, but you have to make sure that the person or company you’re signing an NDA with is the person or company you’re actually working with.
This is helpful for both parties involved. If you’re signing an NDA with a contractor, you want to make sure you’re signing it with the person actually building your product and not their manager.
If you’re signing an NDA with a potential partner, you want to make sure that you’re signing it with the person at the company who will actually be working on your project.
Make sure you and your contractor are on the same page when it comes to what information is confidential. If you are hiring a contractor, you should make sure you both understand which information is confidential. And if you are signing an NDA with a contractor, be sure to specify all the information that is confidential.
Don’t be afraid to negotiate the terms of your NDA. It’s important to note that every NDA is different. What’s included in one NDA, may not be included in another.
If you’re worried about what’s in the NDA, you can always ask your contractor to negotiate the terms.
Conclusion:
NDAs apply to more than just outsourcing software development. They are great for businesses who are creating a new product or who are partnering with third-party vendors and contractors that may have access to proprietary information.
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