Whenever you are entering into a new business relationship, it’s always important to have a certain level of confidence in trusting your new associate. Partnering up can be a great way to grow your business, take advantage of new perspectives, and obtain access to additional capital. However, if confidential information about your business will be disclosed during the relationship, you owe it to yourself to use a non-disclosure agreement.

These agreements will help you keep your confidential information under wraps and avoid losing proprietary information to competitors. Below, we are going to talk you through a few of the reasons why you should consider using a non-disclosure agreement. Remember that if you have any questions related to business law or would like to get expert legal advice, you can always reach out to Derryberry & Associates LLP for help.

1. Protect Your Information

Perhaps the best reason to pursue a non-disclosure agreement is that it can help you protect your information. Whether it’s financial information, business strategy, or new ideas, you don’t want your competition to have access to certain things. That’s why a non-disclosure agreement is such a great option. It will legally prevent your business partner from spreading information that you want to keep confidential. If you are entering a new business relationship with someone that will have access to your company’s confidential information, it makes a lot of sense to pursue a non-disclosure agreement.

2. Lay Out Consequences for Spreading Confidential Information

Another great reason why you should consider using a non-disclosure agreement is that it will layout the specific consequences for spreading internal information. The legal ramifications are oftentimes enough to prevent someone from sharing the information you want to keep confidential. However, if someone does indeed breach the non-disclosure agreement, it’s nice to know that the ramifications are already laid out in a legal document. It’s a great insurance policy against the spread of confidential information that every business owner should be aware of.

3. Gain Peace of Mind

You never want to enter into a business relationship that you don’t trust your partner in, but the truth is you never know what can happen in the future. With a non-disclosure agreement in place, you will have peace of mind knowing that you are legally protected. This peace of mind will help you move forward with the business relationship without worrying about compromising your internal information. Asking someone for a non-disclosure agreement is a must if you are worried about the spread of confidential information. Any responsible businessperson will understand the need for protecting internal strategies and information and will sign the NDA without a second thought.

Non-disclosure agreements are a great option if you are worried about your confidential information as you enter into a new business relationship. If you have any questions about NDAs or would like to speak with an expert business attorney, reach out to Derryberry & Associates LLP today.