NDA

A legal document to safeguard or deter non-spillage of confidential information?

I used to think NDA is required for all business dealings, contractual agreements with vendors and employees so as to bind them to the clauses and duties of such protection of the confidential information. If there’s such a breach, innocent can pursue breach of contract.

Do you know that even without one, there’s also the law of confidence that governs if there’s breach of confidence?

To prove that there’s a breach of confidence, however, there would need to have 3 proofs:

-information must be itself be have the quality of confidence in it

– it must be in a circumstances that have an obligation of confidence

-there must be unauthorized use of such information , to the detriment of that party that communicate the information to you

With such existing law already in place, would you want to play safe and ensure you continue the practice of having one before any transactions and dealings?

If it’s part of your business documentation process, it may continue on such practice. Nevertheless, even without one, on the course of such above relationships whereby exchanges of confidence information is part and parcel of your operations, and other intangibles are involved, documentation may be secondary consideration. No hard and fast rule, the law will still be there.