Understanding the Benefit of a Confidentiality Agreement Form

All businesses want to protect their sensitive information and data. They do not want unauthorized people or outsiders to find out this information, as it could be used against them or offer leverage to their competitors. While businesses need to share some amount of data or information with their service providers, they can ensure a smooth working relationship by getting their service providers to sign a confidentiality agreement.

Signing the Agreement

When you hire a service provider, you definitely will have to share some information related to your business. The information shared will primarily depend on the type of service you intend outsourcing. Under such circumstances, you can draft an agreement that lists down the how the service provider may or may not use the information provided to them.

Some organizations also require their own employees to sign a confidentiality agreement wherein they clearly highlight that business critical data and information cannot be used for personal benefits, leaking to media or unlawful activities.

Many people confuse this agreement with a non-disclosure agreement and use the terms interchangeably. While there are similarities between the two and both aim to protect confidential information and intellectual property, the difference lies in the penalties that the organization can impose when confidential information is divulged. Typically, companies impose more serious penalties for breach of confidentiality agreements and the penalties can be a lawsuit seeking substantial damages or jail time.

Using Confidentiality Agreement Form

Thanks to the advent of Internet, organizations can get industry-specific confidentiality agreement forms rather easily. These forms usually contain all the required terms and conditions related to the business and make sure that the privacy of the business is maintained and honored.

Using a confidentiality agreement form makes it easy to list down the ways that the sensitive information and data can be used and also the ways it cannot be used. You can even customize the form further to meet your specific needs and this ends up saving a lot of time and energy, as there is no need for the organization to draft the agreement from scratch. It makes the person creating the forms more productive.

It is also important to remember that once the agreement has been signed by both parties, it becomes a legally binding agreement. If a dispute arises, either party can present the agreement in a court of law.  This type of agreement can help organizations protect their business critical data and trade secrets in a highly competitive market and that is why these agreements have become very popular today.

Author’s Bio:

Mark Smith is a legal advisor, and comes across many people who are flummoxed by the intricacies of the different laws. He is of the belief that there is no substitute to thorough information, and the one who is informed will never lose his/her way. These posts are a part of his initiative of disseminating legal knowledge among common masses.

Why Is a Confidentiality Agreement Important for Businesses?

In any business, there is some information that the company would not want its competitors or people outside the realms of the organization to know. This includes client details, business plans and trade secrets. To protect this type of information from leaking, companies often ask new employees to sign a confidentiality agreement before starting employment.

Scope of the Agreement

By signing the agreement, the employee becomes liable to the organization for divulging information that the organization considers sensitive. Once signed, the agreement holds true for the entire duration of the employment and can also extend after the employment ceases.

The moment an employee signs this kind of agreement, he has the obligation to ensure that any sensitive information that he knows or gains during his employment should not be divulged outside the company intentionally or unintentionally.

Even after the employee separates from the organization, he cannot divulge the information, be it by word of mouth, hard copy or digital copy.

While it is a common practice to make employees sign this type of agreement, organizations also can get vendors, suppliers, contractors and other business partners to sign it.

Even individuals can make use of the agreement when they are divulging sensitive information to their accountants or other people.

Customizing the Agreement

Today, it is very easy to get a confidentiality agreement form from the Internet. There are many websites that allow companies and individuals to download this form for a nominal fee. Once you have the form, you can easily customize it to suit your needs. Alternatively, you can look for industry-specific forms, which will contain information that each industry would like to keep confidential.

When you are using a confidentiality agreement form, it is important to specify clearly how each party involved will handle the information. It should clearly mention the duration of the agreement or mention a time period during which the sensitive information can or cannot be disclosed. In addition, there should be provisions in the agreement to allow disclosure and access to certain type of information that the person may need work effectively.

Consideration

If a person breaks the confidentiality agreement, the punishment will depend not only on the information that the person divulges, but also on the gravity of the situation. If you have signed such an agreement, you will lose your job and end up ruining your reputation as an employee or independent contractor. If the company decides to take you to court, you will have the added burden of fighting a lawsuit which can be quite expensive. While breaking the agreement may not lead to jail time, you could end up paying a substantial amount in damages.

Author’s Bio:

Mark Smith is a legal advisor, and comes across many people who are flummoxed by the intricacies of the different laws. He is of the belief that there is no substitute to thorough information, and the one who is informed will never lose his/her way. These posts are a part of his initiative of disseminating legal knowledge among common masses.

Top 10 Tips On How To Write A Bill Of Sale For A Car

Purchasing and selling a car includes much more than a handshake and key exchange. Registering is the most important part which requires the most care and one can legally secure oneself with the bill of sale. Be it any vehicle that you purchase, it needs a bill of sale to determine that you are the legal owner. It is also used by the jurisdiction to determine the sales tax. Most of the states have their own official blank bill of sale form. Nowadays, you can even download the blank bill of sale form from the Internet. Regardless of from where you get the form, it is important to know the correct process of writing a car bill of sale. Here are some tips that will help you do so.

  • It is essential to include the car make, model and the year of the car in the document. VIN (Vehicle Identification Number) must also be included in it.
  • Put the legal full name of the old owner as well as the new owner of the vehicle. Do not forget to mention the correct billing address too.
  • Mention the correct date on the document. Make sure you remove the license plates off the car once you get the full agreed money upon both parties for the car.
  • The price amount that you sold the car to the new owner must be included on the document. Give them the title of the car by signing over the document.
  • It is really important to make sure that the buyer and the seller signs of the bill of sale document. The signature in it implies that both of them have agreed to the terms and conditions mentioned in it.
  • It is also important to put the date on the signature that you put on the paper. It is done as part of the legal process.
  • Once the vehicle is sold and all the paperwork is over, let the Department of Motor Vehicles know that you have sold out the vehicle. Also let them know the name of the new owner.
  • It is also important to send a copy of the document to the Department of Motor Vehicles to make them have all the information on the file. It will be great if you keep a copy of the same with you.
  • Always sell your vehicle in presence of somebody else rather than the buyer and the seller. It is done to have a witness just to be on the safer side.
  • Last but not the least; do not leave the license plates on the vehicle. Because of some legal reasons it is important to make sure you remove it from the vehicle.

Author’s Bio:

Mark Smith is a legal advisor, and comes across many people who are flummoxed by the intricacies of the different laws.  He is of the belief that there is no substitute to thorough information, and the one who is informed will never lose his/her way.  These posts are a part of his initiative of disseminating legal knowledge among common masses.

How a Confidentiality Agreement Helps a Business

In today’s world, more and more businesses are adopting the concept of confidentiality agreements. They realize this to be an effective way to protect their business from damaging leaks, intentionally or unintentionally. Today, many companies, worried about this, have confidentiality clauses as a part of their employee contracts; others go a step ahead and make employees and subcontractors sign a separate confidentiality agreement before they join employment. If you run a business and your employees handle sensitive information or you have to share business-critical information with a partner, it is good to make employees and partners sign this contract.

Many organizations do not realize the amount of damage unauthorized disclosure of information can do. It takes just a single careless or devious employee or person to cause thousands of dollars worth of damage to your organization.

Why Does Your Business Need This Agreement?

Some of the information or data that can damage your business if leaked is as follows:

  • Business plans
  • Business strategies
  • Client passwords and other access information
  • Technical diagrams
  • Software programs that the company has developed
  • Financial information
  • Personal details and information of employees
  • Research results
  • Legal documentation
  • Certain confidential correspondence

If one of the aforementioned items is leaked out incorrectly or reaches wrong hands, it could not only cause a PR headache, it could cause your business irreparable damage too. That is why you need to sit down and check your company’s processes to see which of your employees and subcontractors have access to business-critical and sensitive information and how you can cover that information via a confidentiality agreement.

How to Implement the Agreement?

Your business can implement the agreement as a separate confidentiality agreement form or you can add the details of the form into employee contracts. However, it is important that the agreement has the right words and legal terms, and becomes legally binding when it is signed by the employee or subcontractor.

When the confidentiality agreement form becomes legally binding, you can take legal action against the person who breaches it. You could file a criminal lawsuit and seek jail time and/or damages from the person.  To ensure the agreement has legal standing, it is best to get a form from a website that has legal experts drafting the agreement. Alternatively, you can ask your lawyer draft it on your behalf.  This will ensure that the agreement clearly states the terms and conditions in a legally acceptable manner.

Author’s Bio:

Mark Smith is a legal advisor, and comes across many people who are flummoxed by the intricacies of the different laws.  He is of the belief that there is no substitute to thorough information, and the one who is informed will never lose his/her way.  These posts are a part of his initiative of disseminating legal knowledge among common masses.