Frequently Asked Questions
There is a lot of private information in a business, such as the business plan, products, services, marketing tactics, etc. The firm may suffer a large loss if this knowledge were to be revealed to the rivals. Therefore, it is important to sign an NDA before sharing any sensitive information with anyone.
Any co-founders, employees, consultants, suppliers, distributors, intermediaries, investors, etc. with whom sensitive information about the firm is discussed should sign an NDA.
A confidentiality agreement and a non-disclosure agreement (NDA) are same. These papers’ titles can occasionally be used interchangeably. Both nondisclosure and confidentiality agreements prevent the disclosure of secret information to outside parties. These two agreements fulfil the same legal purpose.
Yes, you have to.
There would be no need to engage into a separate Agreement for this purpose if you were entering into an employment agreement with an employee or a consulting agreement with a consultant. Instead, you could simply insert an NDA language in such agreements.
Yes, you should, as you would have to disclose a lot of sensitive information to this investor throughout the due diligence process. You must sign an NDA with the investor in question or include a legally enforceable NDA clause in the term sheet you sign with them.