This document helps establish protection of company’s confidential information from being shared or misused by the vendor beyond the scope of engagement.
A company has to engage with external vendors and service providers to get services as well as buy products. In both the scenarios the company needs to share information with the vendors and contractors. To make sure this information is not misused, having an NDA in place is of great help. This document helps establish protection of company’s confidential information from being shared or misused by the vendor beyond the scope of engagement.
Some of the key things one has to keep in mind while creating an NDA between a vendor and the service seeker (company):
- Contact Information of the company and the vendor signing the contract: Vendor Confidentiality Agreement is a contract between the company and the vendor it has hired or intends to hire for helping provide certain services or products. So, it must contain the contact information of the vendor and the company as both the parties will be signing the contract.
This information needs to be added at the start of the contract.
- Company’s Confidential Information: This section defines the confidential information that it is sharing with the vendor. While engaging a vendor for outsourcing services or buying products, companies need to share specifications and details of the products they are buying or services they are seeking. A lot of this information is confidential to the organization and might be of competitive advantage against other industry players. Listing out this information is very important not only to keep the trade secrets, but also to maintain the competitive advantage.
- Confidentiality Obligation Survives Engagement: This addition to the contract makes it clear to the vendor that the contract does not end with the end of engagement. As long as the material remains a trade secret, it is the duty of the vendor to keep it a secret.
- Signatures: As this confidentially agreement is a contract, it has to be signed by the vendor and a representative of the company seeking vendor services. 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 vendor being engaged to provide services and/or supply physical products. You can use Legitt template for creating an NDA with a vendor here.
As a business you might be creating a few other NDAs with other stakeholders.
Some of the commonly used NDAs are:
- General NDA. You can read more about general NDAs here
- Employer-Employee NDA. You can read more about NDAs signed between employee and employer here
- NDA signed between a company and a contract worker. You can read more about NDAs signed between a company and its contract workers here
- NDA signed between a company and a client. You can read more about NDAs signed between a company and its client(s) 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.