{"id":173413,"date":"2022-08-03T12:07:52","date_gmt":"2022-08-03T11:07:52","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=173413"},"modified":"2025-08-18T04:05:47","modified_gmt":"2025-08-18T03:05:47","slug":"when-use-nda","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/when-use-nda\/","title":{"rendered":"When Should I Use an NDA in the UK?"},"content":{"rendered":"\n<p>It is integral to protect your company\u2019s confidential information. As such, your business may benefit from using a <a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/small-business-nda\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>non-disclosure agreement<\/u><\/a> (NDA). An NDA can help protect the most sensitive information and prevent unauthorised disclosure without your consent. Such agreements can be used in employment contracts or when supplying information to third parties such as contractors, potential investors or financial advisors. Information can be easily shared instantly across multiple platforms and jurisdictions; therefore, protecting confidential business information has become more critical than ever. The rise of remote working, increased collaboration with external partners, and the growing value of intellectual property mean that businesses must be proactive about safeguarding their information.<\/p>\n\n\n\n<p>This article will explain when and how your business can use non-disclosure agreements to ensure it adequately protects its confidential information against third parties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a Non-Disclosure Agreement?<\/h2>\n\n\n\n<p>An NDA is a written contract that identifies when another party cannot use or disclose your confidential information to others. Many people assume <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/benefits-using-nda\/?_thumbnail_id=3246\"><u>non-disclosure agreements<\/u><\/a> apply to employees only. While it is true that confidentiality clauses are common within employment contracts, they may also be used in other business relationships.&nbsp;<\/p>\n\n\n\n<p>NDAs are legally binding contracts that create a confidential relationship between parties. They establish clear boundaries around what information can be shared, how it can be used, and what happens if those boundaries are breached. The agreement typically includes definitions of what constitutes confidential information, the duration of the confidentiality obligations, and the remedies available if the agreement is violated.<\/p>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>For this article, we will consider how your business protects sensitive information that passes to third parties, such as contractors, advisers and other companies. <a href=\"https:\/\/legalvision.co.uk\/employment\/workplace-confidentiality\/\" target=\"_blank\" rel=\"noreferrer noopener\"><u>Confidential information<\/u><\/a> and sensitive information include data that would harm your company if released into the public domain. Therefore, it does not include any information already in the public domain.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Types of Non-Disclosure Agreements<\/h2>\n\n\n\n<p>Understanding the different types of NDAs can help you choose the most appropriate protection for your specific situation:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>unilateral NDAs<\/strong> are one-way agreements where only one party discloses confidential information. These are common when pitching to investors or sharing information with potential partners; and<\/li>\n\n\n\n<li><strong>mutual NDAs<\/strong> protect both parties when they are sharing confidential information with each other. These are typical in merger and acquisition discussions or joint venture negotiations.<\/li>\n<\/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        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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Your business must ensure that those parties cannot misuse the information for their benefit or disclose it to others without your consent.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">What Does an NDA Do?<\/h2>\n\n\n\n<p>A non-disclosure agreement usually defines which information your company classes as confidential in nature. It will then constrain the third party by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>limiting ways they can use or record that information;<\/li>\n\n\n\n<li>limiting the circumstances in which they can pass on or disclose that information to others; and<\/li>\n\n\n\n<li>giving rise to a right to request them to return (or destroy) the information.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What if the Other Party Refuses to Sign an NDA?<\/h2>\n\n\n\n<p>Some companies, advisers or investors refuse to sign NDAs as a matter of course. In this scenario, it may be worth considering offering them a mutual non-disclosure agreement.&nbsp; This document will confirm that your company will keep their information confidential and within set limits, and it will do the same for your business. Additionally, offering mutual non-disclosure agreements can sometimes build trust between the parties and make NDAs appear less aggressive and more balanced.<\/p>\n\n\n\n<p>When faced with resistance to signing an NDA, consider alternative approaches such as limiting the scope of information disclosed initially or only disclosing information after preliminary agreements have been signed. Let us consider a quick example below.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Example<\/h3>\n\n\n\n<p>Suppose your business is doing well but can benefit from <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.uk\/startups\/approaching-seed-stage-round\/\"><u>external investment<\/u><\/a>.&nbsp; A well-known, reputable investor approaches you. Initial talks go well, and they ask you to pitch the company to them. Because your planned presentation involves confidential information, you ask them to sign an NDA, but they make it very clear that they will never sign one.<\/p>\n\n\n\n<p>You need to weigh the benefits against the risks of pitching to the investor. If the potential investment would be greatly beneficial to your company, the risk of them learning some confidential information may be worth it. However, suppose you have not obtained a patent on a new invention. Instead, it would be a trade secret. Hence, it could prove risky to disclose information about it. In some circumstances, you could potentially lose the ability to obtain a patent for that invention in the future. If the business deal is of high value and high risk, you should consider obtaining legal advice before acting.<\/p>\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\/4\/2023\/05\/03024102\/LegalVision_UK-Supplier-Contracts-Checklist.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">Supplier Contracts Checklist<\/div>\n            <div class=\"body-text\">\n                <p>Download this free Supplier Contracts Checklist to ensure your contracts will meet your business\u2019 needs.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/supplier-contracts-checklist.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>Disclosing confidential information outside your company can be unavoidable in certain situations. Therefore, it is a case of limiting information spread as far as possible and seeking third parties to sign an NDA before providing them with the information. Where a party refuses to sign, you may suggest a mutual NDA or weigh up the risks and benefits of disclosing confidential information without any agreement in place.&nbsp;<\/p>\n\n\n\n<p>If you need help with non-disclosure agreements, our experienced <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.uk\/contract-lawyers-lp\/\"><u>contract lawyers<\/u><\/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:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https:\/\/legalvision.co.uk\/membership\/\"><u>membership page<\/u><\/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-1755485770950\"><strong class=\"schema-faq-question\">Should my lawyer sign an NDA before I obtain advice from them?<\/strong> <p class=\"schema-faq-answer\">No. Your lawyer has a general duty of confidentiality towards you and can only disclose information to others with your specific consent.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1755485776813\"><strong class=\"schema-faq-question\">What else can I do to protect my company\u2019s confidential information?<\/strong> <p class=\"schema-faq-answer\">Your business can use other methods, such as trade marks, patents and copyright. But the first defence is only to disclose confidential or sensitive information when necessary.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1755485781621\"><strong class=\"schema-faq-question\">How long should an NDA last?<\/strong> <p class=\"schema-faq-answer\">The duration depends on the nature of the information and the business relationship. For highly sensitive information, NDAs often remain in effect indefinitely or until the information becomes public. For other confidential information, periods of 2-5 years are common.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1755485786865\"><strong class=\"schema-faq-question\">What happens if someone breaches my NDA?<\/strong> <p class=\"schema-faq-answer\">Breach of an NDA can result in legal action for damages, injunctive relief to prevent further disclosure, and potentially recovery of profits made from misusing your information.<\/p> <\/div> <\/div>\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=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/173413\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-contracts\/when-use-nda\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"When Should I Use an NDA in the UK?\" 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>It is integral to protect your company\u2019s confidential information. As such, your business may benefit from using a non-disclosure agreement (NDA). An NDA can help protect the most sensitive information and prevent unauthorised disclosure without your consent. Such agreements can be used in employment contracts or when supplying information to third parties such as contractors,<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/when-use-nda\/\">Continue reading <span class=\"sr-only\">&#8220;When Should I Use an NDA in the UK?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13509,"featured_media":3143,"comment_status":"closed","ping_status":"closed","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":"3682,1965,1055,3496,2419,1602","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,21,216,298,360],"class_list":["post-173413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-medium-business","tag-non-disclosure-agreement","tag-non-compete-clause","tag-commercial-contract"],"acf":[],"yoast_head":"<!-- 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But the first defence is only to disclose confidential or sensitive information when necessary.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/when-use-nda\/#faq-question-1755485781621","name":"How long should an NDA last?","acceptedAnswer":{"@type":"Answer","text":"The duration depends on the nature of the information and the business relationship. For highly sensitive information, NDAs often remain in effect indefinitely or until the information becomes public. For other confidential information, periods of 2-5 years are common.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/when-use-nda\/#faq-question-1755485786865","name":"What happens if someone breaches my NDA?","acceptedAnswer":{"@type":"Answer","text":"Breach of an NDA can result in legal action for damages, injunctive relief to prevent further disclosure, and potentially recovery of profits made from misusing your information.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13509"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=173413"}],"version-history":[{"count":20,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173413\/revisions"}],"predecessor-version":[{"id":194440,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/173413\/revisions\/194440"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3143"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=173413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=173413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=173413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}