A non-disclosure agreement lets you discuss a deal, product or partnership without giving away confidential information. It should be signed before sensitive information is shared, not after. The NDA is usually the first document in a transaction, and a weak one leaves the most valuable information, such as customer lists, pricing, designs and source code, exposed.
- Scope: a clear definition of confidential information and its exclusions, such as public information.
- Permitted use: the recipient may use the information only for the stated purpose and share it only with those who need to know.
- Duration and return: how long the duty lasts and what must be returned or destroyed.
- Remedies: realistic damages and injunctive relief. Thai courts may reduce a penalty they consider excessive, so an oversized penalty clause weakens the contract.
- Staff and advisers: employees, advisers and affiliates who receive the information are bound, and the recipient answers for their breaches.
- Non-solicitation: where relevant, a restriction on approaching the other side’s customers or employees.