In the increasingly competitive and globalized market, information is sacred. Companies secure it physically, digitally and in the minds of employees. As such, entities that are about to enter a partnership, merge or perform a transaction would be well-advised to get up to speed on how they handle commercial nondisclosure agreements (NDAs).

NDAs are legal contracts between parties that determine what information is deemed confidential and must be kept private. By their very nature, they are circulated prior to the parties actually agreeing to any business terms or sharing any information as part of a proposed transaction. Often, they are not given much thought, as the companies may be focused on the substance of the transaction and may not want to appear hard to work with by seeking massive revisions on what may be their introductory set of documents. Yet, this reluctance to review and revise an NDA can be a major error.

Who’s Sharing Information