WHAT IS A BUSINESS PLAN NDA?

A Business Plan NDA is a legally binding agreement that prohibits parties who receive copies from disclosing the contents of the business plan documents. The NDA is very important because business plans are provided to several funding and financial investors when one is seeking money to launch a business. The signed NDA will also allow the court to determine liability and to award money damages if a party to which you have provided a copy of your business plan chooses to divulge or use part of your business plan without your consent.

WHEN DO YOU NEED A BUSINESS PLAN NDA?

A Business Plan NDA is needed when you want to submit your business plan to investors for potential funding. Since all banks and financial institutions are not ethical a Business NDA that will prohibit the disclosure of the terms of your business to others or to use parts of it in their own business ventures. The signed NDA can also be used to hold a breaching party liable for money damages.

WHAT IS INCLUDED IN BUSINESS PLAN NDA?

A Business plan NDA should include the following:

• Names and information of the parties

• A comprehensive explanation of what will be construed as confidential information even if in the normal daily life, it would not be confidential

• Recitals

• Statement regarding no implied waiver

• Statement that the business plan does not purport to offer and/or guarantee securities or any future interest in the company

• Statement of the applicable governing law if there is a breach

• Statement that any breach of confidentiality of the business plan will subject the breaching party to money damages