How to Create an NDA between a Company and a Client?

Client NDA

Client NDATo cover the risk and unwanted consequences the client needs to sign an NDA before the project starts.

As a company, you would need to engage with clients for providing services or executing engagements and projects for them. Many clients would not want to initiate the engagement till an NDA is signed. This is because while starting and executing the engagement the client would be required to share a lot of information of their company with you. Some part of this information might be covered under trade secrets for the firm. Sharing this information with you is a risk for the client. To cover the risk and unwanted consequences the client needs to sign an NDA before the project starts.

Some of the key things one has to keep in mind while creating an NDA between a service provider and a company are: 

  1. Contact Information of the Parties: Client NDA is a contract between your company and your client. So, it must contain the contact information of the two parties. Both parties need to enter the details of the legal entities and the contact person representing these legal entities. 

This information needs to be added at the start of the contract. 

  1. Engagement Overview: This section gives a high-level overview of the engagement that the two parties are entering into. You need not give granular details of the engagement but just touch the key requirements and deliverables. 
  2. Confidential Information: The client will be sharing information with you for the said engagement out of this information some might be already in the public domain and some will be confidential. This section only covers the confidential information. 
  3. Confidentiality Obligation Survives Engagement: The client will be hiring your company for a specific engagement or a specific duration but clients confidential information is classified as confidential even beyond the duration of the engagement. This addition to the contract ensures that the contract does not end with the end of engagement. As long as the information remains confidential it is the duty of the service provider to keep it a secret. 
  4. Signatures: A contract is a legally binding document. So, it has to be signed by the representatives of the two companies. Have a separate section at the bottom of the document for both the parties entering into the contract. The parties can sign the document digitally or as hard copies.

The inclusion of the above listed points covers all the key points that are important to create an air-tight NDA with a contractor. You can use Legitt template for creating an NDA with a client worker here.

As a business you might be creating a few other NDAs with other stakeholders. 

Some of the commonly used NDAs are: 

  1. General NDA. You can read more about general NDAs here
  2. Employer-Employee NDA. You can read more about NDAs signed between employee and employer here
  3. NDA signed between a company and a vendor or a service provider. You can read more about NDAs signed between a company and its vendor/service provider here
  4. NDA signed between a company and a contract worker. You can read more about NDAs signed between a company and its contract workers here

Legitt is a platform where you can create contracts using our templates created by professionals or use AI to help you create agreements and contracts. Then you can automate and create workflows for the contracts and track them as smart contracts on blockchain. 

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