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When do I need a non-disclosure agreement?

On Behalf of | Feb 10, 2018 | Business And Corporate Law |

When operating a business in Mississippi, you will frequently need to enter into contracts for a variety of reasons. One of the types of contracts you may want to familiarize yourself with is the non-disclosure agreement, also called a confidentiality agreement.

As the name implies, this type of contract is designed to ensure that some information you share with another entity is kept secure and confidential. As explained by Forbes, one of the times that you may consider creating such an agreement is when you are looking at selling your company. It is likely that you may have discussions with a potential buyer but that no sale actually happens. In this case you would want to ensure that what you shared does not end up getting used against you in a competitive situation, for example. A non-disclosure agreement may help you here.

Sharing details of a new product or service to a potential partner is another time when you might create a confidential agreement. You may even want to have your employees sign these contracts when you know they will have access to sensitive company information. Similarly, if you hire outside vendors or agencies for specific services and must give them insight into sensitive areas of your business, these contracts may be important. 

This information is not intended to provide legal advice but is instead meant to give companies and individuals in Mississippi an idea of when they may benefit from creating a non-disclosure agreement with another individual or business.