Is a real estate agent or business owner asking you to sign an NDA? What is it? Should you sign it or not? Here’s a quick overview.
There are lots of articles out there defining and expounding on Non Disclosure Agreements (NDAs). A great example is this article over at rocketlawyer.com (awesome name, incidentally as I imagine a lawyer in a superhero outfit).
To summarize it all in one line, an NDA is a contractual secret.
Picture this dialogue to bring it home:
Buyer: I’m thinking about buying your business. How much money flows through this till?
Seller: Don’t tell anyone, please, but we do $2000.00 per day CASH! That’s a secret. Don’t share, please.
Buyer: That’s not so bad, but I was hoping for $2200.00 per day. Have a nice day.
Three day later, the buyer opens up the same business right across the road and steals all the ideas, and cuts the daily sales of the Seller to $1200/day. Not very cool and happens all the time.
An NDA would have either protected the seller for a period of time, or punished the buyer severely in court for his unethical behaviour – or both.
There are sample NDAs out there, but you should consult a lawyer to make sure that it’s bulletproof.