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Watch Your Mouth!

Before you sign on the dotted line . . .

Make sure your nondisclosure agreement (NDA) meets these standards, or it won't be worth the paper it's written on:

  • The title of the document must match its contents.
  • The NDA must be appropriate for the party (i.e., family and friends or business associates).
  • When dealing with business associates, the person signing the NDA must be a designated officer of the company.
  • Consideration must be exchanged between parties.
  • The NDA must be valid where you intend to do business. An NDA drafted in one state may be invalid in another.

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This article was originally published in the August 1999 print edition of Entrepreneur with the headline: Watch Your Mouth!.

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