If you operate a small business, having freelancers who perform work for you can often be a necessity. However, when you are dealing with clients that have sensitive information or your company has its own intellectual property to protect, an NDA may become necessary. Here are a few things that you gain by having an NDA signed by your contractors.
- Determine what is private – An NDA gives you an opportunity to define confidential information, including emailed content, processes used by your business, and any intellectual property, such as patents or copyrights.
- Outline damages – The NDA also allows you the opportunity to state in advance what the consequences are for a breach of confidentiality. It gives you a legal means of enforcing the contract and receiving damages if someone shares private info.
- Improved business partnerships – Your relationships with your freelancers and other subcontractors will be better when everyone knows what is expected of them. This is even true when you have a personal friendship with the individual working for you. Nothing messes up a friendship faster than a breach in confidentiality that costs someone money. A contract is smart, no matter who you are working with.
California Business Contracts and Agreements for Small Business Owners
It is more important than ever to protect your small business with the current economic difficulties due to the COVID-19 outbreak. For affordable services that small businesses need, call Pokala Law APC at 1.844.695.1487, or you can request an appointment online.