{"id":1304,"date":"2020-12-15T11:54:17","date_gmt":"2020-12-15T11:54:17","guid":{"rendered":"http:\/\/nz.legalvision.com.au\/?p=1304"},"modified":"2022-10-04T18:36:54","modified_gmt":"2022-10-04T05:36:54","slug":"when-to-use-a-non-disclosure-agreement-in-new-zealand","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/","title":{"rendered":"How Does a Non-Disclosure Agreement Work in New Zealand?"},"content":{"rendered":"\n<p>A non-disclosure agreement serves a practical purpose for New Zealand people and businesses. This document allows you to protect your valuable business information and ensure that it is not provided to competitors. This article will outline:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>what non-disclosure agreements are;<\/li><li>what non-disclosure agreements are used for; and<\/li><li>what should be included in a non-disclosure agreement.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Non-Disclosure Agreement?<\/h2>\n\n\n\n<p>Non-disclosure agreements are also known as NDAs or <a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/how-to-enforce-confidentiality-agreement-nz\/\">confidentiality agreements<\/a>. In business, NDAs are commonly used to protect knowledge and assets. If you sign an NDA, that means that if you share specified confidential information with another party, you may be legally liable for this disclosure. This means you can share certain information with another party and ensure that they do not share this information with a third party. In New Zealand, NDAs are automatically mutual, so both parties agree not to disclose any information about the other party.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Are Non-Disclosure Agreements Used For?<\/h2>\n\n\n\n<p>Often, NDAs are used by new startup companies that may be developing a new and exciting product or are implementing creative new processes. For example, suppose you are looking to chat with possible:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>partners;&nbsp;<\/li><li>employees;&nbsp;<\/li><li>investors; or&nbsp;<\/li><li>suppliers.&nbsp;<\/li><\/ul>\n\n\n\n<p>In that case, you can provide them information about your business with the confidence that they will not tell a competitor or anyone else. You may also sign an NDA if you start a new job and acquire sensitive information about the new business.<\/p>\n\n\n\n<p>NDAs often protect information and trade secrets, such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>a business idea that a trade mark or patent does not yet protect;&nbsp;<\/li><li>the construction of a product or service;<\/li><li>the design of a product or service;<\/li><li>your business model or the operational structure of your business; or<\/li><li>a new product that you are trialling on a small audience.<\/li><\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n 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They identify the relevant parties, in particular, the:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>disclosing party; and<\/li><li>receiving party.<\/li><\/ul>\n\n\n\n<p>They will also specify that confidential information will not be shared outside the parties. Notably, there can be two or multiple parties. It can even be as broad as everyone bidding on a specific project.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Confidential Information<\/h3>\n\n\n\n<p>If you are the disclosing party, it is best to enter into an NDA before the sensitive information is shared, as this gives you the best guarantee that your information will stay protected. You must clearly outline the specifics of the confidential information in the agreement, so you need to know what information you want to protect. If you do not include the protected information in the contract, the other party may not have to keep it confidential. There is no limitation to what you can include in an NDA, but the other party may not sign it if they think it is unreasonable.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Permitted Disclosures<\/h3>\n\n\n\n<p>Further, you may also want to outline any permitted disclosure purposes if you believe disclosing the information may be helpful in certain situations. These disclosures are usually limited to a list of people and for purposes that are beneficial to the case.\u00a0<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For example, say that a party has received information about a possible new business to invest in. They may be able to share this information with their business partner to assess whether or not it is a venture they wish to pursue.<\/p>\n<\/div>\n\n\n\n<p>Again, keeping these limitations as narrow as possible will allow for the best protection of your information.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Liability<\/h3>\n\n\n\n<p>You may also consider how you will hold people liable for a breach. In most cases, you can take legal action against the party that has breached the non-disclosure agreement. However, if there are several parties, things get more complicated. Depending on your circumstances, you may need several documents. Or else, you could just add a clause into the agreement that specifies the liability of each party in the event of a breach.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Time<\/h3>\n\n\n\n<p>Most confidentiality agreements continue indefinitely. However, an NDA may specify a time limit during which the information must remain confidential.<\/p>\n\n\n\n<p>NDAs can be very quick and easy to put together but can also be complicated if the information is highly sensitive.\u00a0<\/p>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/2\/2021\/12\/22115855\/cytonn-photography-GJao3ZTX9gU-unsplash-e1640129621597.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Commercial Contracts Checklist<\/div>\n            <div class=\"body-text\">\n                <p>To protect your business, ensure supplier contracts meet your business\u2019 needs. Our free Commercial Contracts Checklist will help.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.nz\/Commercial_Contracts_Guide_NZ.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>Non-disclosure agreements serve a practical purpose for protecting business information, especially for startup businesses with new creative ideas. NDAs are reasonably straightforward documents to put together. The most important thing is ensuring that you know what specific information you want to protect and include that in the agreement. Otherwise, the information will not be protected by the document.&nbsp;<\/p>\n\n\n\n<p>If you need help with non-disclosure agreements, our experienced <a href=\"https:\/\/legalvision.co.nz\/contract-lawyers-lp\">contract lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or visit our <a href=\"https:\/\/legalvision.co.nz\/membership\/\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1661912653534\"><strong class=\"schema-faq-question\">Can I protect any information with an NDA?<\/strong> <p class=\"schema-faq-answer\">Yes, so long as you include it in the agreement so that the parties know it is protected. Additionally, if a party thinks the NDA agreement should not protect certain information, they do not have to sign it.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1661912763460\"><strong class=\"schema-faq-question\">Can only two parties be bound by an NDA?<\/strong> <p class=\"schema-faq-answer\">Not necessarily. You can have a general agreement with a group of people, such as a group of people bidding on a particular project and receiving corresponding confidential information. But, all people need to be aware they are a party to the contract and that the information is confidential.<\/p> <\/div> <\/div>\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1304\" \/>            <input value=\"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Does a Non-Disclosure Agreement Work in New Zealand?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A non-disclosure agreement serves a practical purpose for New Zealand people and businesses. This document allows you to protect your valuable business information and ensure that it is not provided to competitors. This article will outline: what non-disclosure agreements are; what non-disclosure agreements are used for; and what should be included in a non-disclosure agreement.<a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/\">Continue reading <span class=\"sr-only\">&#8220;How Does a Non-Disclosure Agreement Work in New Zealand?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13318,"featured_media":909,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1639,202036,1288,625,1957,1205","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[3],"tags":[24,25,41,54],"class_list":["post-1304","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-startup","tag-small-business","tag-commercial-contracts","tag-medium-business"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Does a Non-Disclosure Agreement Work? | LegalVision NZ<\/title>\n<meta name=\"description\" content=\"Do you need to protect your ideas or New Zealand company knowledge? 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Find out what a non-disclosure agreement is and how to use it.","breadcrumb":{"@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#faq-question-1661912653534"},{"@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#faq-question-1661912763460"}],"inLanguage":"en-NZ","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/"]}]},{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#primaryimage","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_057.jpg","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/12\/DTS_Grand_Design_057.jpg","width":2000,"height":1333,"caption":"Franchisor Promises Before the Franchising Agreement | LegalVision NZ"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.nz\/"},{"@type":"ListItem","position":2,"name":"Articles","item":"https:\/\/legalvision.co.nz\/articles\/"},{"@type":"ListItem","position":3,"name":"Commercial Contract Articles","item":"https:\/\/legalvision.co.nz\/category\/commercial-contracts\/"},{"@type":"ListItem","position":4,"name":"How Does a Non-Disclosure Agreement Work in New Zealand?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.nz\/#website","url":"https:\/\/legalvision.co.nz\/","name":"LegalVision New Zealand","description":"LegalVision is a commercial law firm in NZ with a commitment to innovation","publisher":{"@id":"https:\/\/legalvision.co.nz\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.nz\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-NZ"},{"@type":"Organization","@id":"https:\/\/legalvision.co.nz\/#organization","name":"LegalVision New Zealand","url":"https:\/\/legalvision.co.nz\/","logo":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/","url":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","contentUrl":"https:\/\/legalvision.co.nz\/wp-content\/uploads\/sites\/2\/2020\/11\/LegalVision_square_logo.png","width":400,"height":400,"caption":"LegalVision New Zealand"},"image":{"@id":"https:\/\/legalvision.co.nz\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/LegalVision","https:\/\/x.com\/LegalVision_law","https:\/\/www.linkedin.com\/company\/legalvision-group"]},{"@type":"Person","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/c9681a63d5cc9ba62dcf9c61066b569a","name":"Abby Jones","image":{"@type":"ImageObject","inLanguage":"en-NZ","@id":"https:\/\/legalvision.co.nz\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/ad516503a11cd5ca435acc9bb6523536?s=96","caption":"Abby Jones"},"description":"Abby (she\/her) is a Legal Content Writer, currently based in Wellington, New Zealand. She is currently completing a Bachelor of Laws and a Bachelor of Arts in Sociology. In her spare time, Abby enjoys op-shopping with friends and spending time with her cat.","url":"https:\/\/legalvision.co.nz\/author\/abigailjones\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#faq-question-1661912653534","name":"Can I protect any information with an NDA?","acceptedAnswer":{"@type":"Answer","text":"Yes, so long as you include it in the agreement so that the parties know it is protected. Additionally, if a party thinks the NDA agreement should not protect certain information, they do not have to sign it.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/when-to-use-a-non-disclosure-agreement-in-new-zealand\/#faq-question-1661912763460","name":"Can only two parties be bound by an NDA?","acceptedAnswer":{"@type":"Answer","text":"Not necessarily. You can have a general agreement with a group of people, such as a group of people bidding on a particular project and receiving corresponding confidential information. But, all people need to be aware they are a party to the contract and that the information is confidential.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13318"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=1304"}],"version-history":[{"count":9,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1304\/revisions"}],"predecessor-version":[{"id":217840,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/1304\/revisions\/217840"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/909"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=1304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=1304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=1304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}