Independent Contractor Non-Disclosure Agreement

An Independent Contractor NDA prevents an independent contractor from disclosing confidential information of the client under the threat penalty.

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If you are a business owner, you probably know that hiring independent contractors may work out better. Perhaps there's a short-term project you'd rather have someone outside the company work on.

It is just that concern for your company's confidential and valuable information preventing you from acting on it. That is where the Independent Contractor NDA comes in and saves the day.

What Is an Independent Contractor NDA?

Non-Disclosure Agreements are not a novelty, and you can find them in almost all types of agreements, employment contracts, and across industries. If you are an app developer, inventor, patent holder, or the like, the Independent Contractor NDA could be of great use. Also, public figures who hire bodyguards, cooks, cleaners, and other services routinely ask them to sign Independent Contractor NDAs.

The agreement should outline what type of information is considered confidential and any other expectations the client or hiring company may want to highlight.

Other Names for Independent Contractor NDA

Depending on your state, an Independent Contractor NDA may also be known as:

  • Independent Contractor Non-Disclosure Agreement
  • Independent Contractor Proprietary Information Agreement
  • Independent Contractor PIA

Who Needs an Independent Contractor NDA?

Any individual or business entity hiring freelancers and independent contractors may find Independent Contractor NDAs useful. Even if you merely want to take extra care to ensure privacy, this type of agreement can give you the peace of mind you need.

Why Use 360 Legal Forms for Your Independent Contractor NDA

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Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Independent Contractor NDA.

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How to Create an Independent Contractor NDA with 360 Legal Forms

The Independent Contractor NDA content can be different depending on the type of information involved. That task is where your focus should be, not on the formatting details and jurisdiction concerns.

Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Independent Contractor NDA?

To create your document, please provide:

  • Hiring Entity: The person or company hiring the independent contractor.
  • Independent Contractor: The name and contact information of the person or company providing the services.
  • Effective Date: The date when the agreement goes into effect.
  • Governing Law: The legal system used in the event of a dispute.
  • Purpose: A short explanation of why the deal is necessary.
  • Confidential Information: A full description of the scope of what entails confidential information.
  • Examples: A specific example of what the agreement would typically cover.
  • Duration: The effectual period of the agreement and extension possibilities.
  • Additional Clauses: Any other clauses and provisions such as non-compete, non-solicitation, or non-disparagement.
  • Signatures: Both parties must sign the agreement.

Independent Contractor NDA Terms

  • Unilateral: An agreement or decision that affects or arrived at by one party
  • Bilateral: An understanding or decision that affects or reached by both parties
  • Proprietary Information: Valuable trade secrets and any other information a company would want to keep secret
  • Injunction: A court order to do or to refrain from doing
  • Indemnity: Contractual protection against legal liability

Independent Contractor NDA Signing Requirements

To ensure it is legally binding and enforceable, the Independent Contractor NDA must be signed by both the client and independent contractor. Both should review the agreement in detail beforehand. Notarization is not necessary nor a legal requirement, but possible if both parties agree.

What to Do with Your Independent Contractor NDA

After signing, the hiring entity and the independent contractor should receive a physical copy of the agreement. Ensuring it's safe and protected is essential if there is ever a dispute in the future, as you may need to present the contract in an arbitration or litigation.

 

Frequently Asked Questions

You do not always have to use a written Non-Disclosure Agreement. In many instances, both parties may settle on an oral agreement. However, having a written contract is common too, and it would possess clear evidence of the agreement and all the provisions. A written contract may reassure both parties and prevent any misunderstandings that might ensue.

A properly executed NDA is legally binding. It is recommended to seek legal advice before breaking the terms in the NDA. Any breach of the contract can result in legal action, including damage compensation and a court order against disclosing the relevant information.

Confidentiality Agreements and Non-Disclosure Agreements (NDA) are used interchangeably, although there are subtle differences in practice.

  • The Confidentiality Agreement is used for a higher level of secrecy. NDAs simply specify the information covered, as opposed to Confidentiality Agreements that may require the parties to actively protect the sensitive data against theft, e-database breaches, and more.

  • The NDA is mostly used in startups involving a third party. Third parties can be potential investors, customers, suppliers, and vendors that would be required to protect any disclosed intellectual property, trade secrets, financial information, etc.

  • NDAs are most common in the US. When doing business across borders, foreign companies may recognize either as a Confidential Agreement.

  • Confidentiality Agreement in Employment. Confidentiality Agreements are more commonly used.

A non-disclosure agreement can be unilateral, mutual, or multilateral.

  • Unilateral NDAs only require the receiving party to sign the NDA.

  • Mutual NDAs or Bilateral NDAs are signed by both parties, usually when both are in receipt of business secrets.

  • Multilateral NDAs govern three or more parties, of which at least one is a disclosing party. The use of a Multilateral NDA eliminates the need for separate Mutual NDAs.

The NDA created through this page is a Unilateral NDA.

NDAs exclude the following:

  • Non-proprietary information: Information that is not classified as a trade secret or owned by one of the parties.

  • Subpoenaed information: If subpoenaed by a court, a receiving party can disclose information to the authority without violating the NDA.

  • Public information: All information considered public knowledge.

  • Common knowledge: Commonly known information in the industry.

  • Previously known information: A receiving party is not required to protect information learned prior to the NDA.

Including a non-compete covenant with your NDA is a promise not to compete against the other party. This may be restricted to a particular market and location. This covenant is most commonly used between employers and employees, especially the star employees who might want to strike out on their own in the same industry. While this can be a separate document, you may also include it in the non-disclosure agreement

An injunction is a court order for one party to refrain from a certain act at the threat of contempt of court. As relates to a NDA, a court injunction would most commonly order one party to not disclose any relevant confidential information they are not supposed to share. The defendant who breaches a NDA may be ordered to pay monetary damage, but even before or after that, the claimant can petition the court for an injunction to order the defendant to not disclose the information or to refrain from disclosing any further.

The non-solicitation cluase is a covenant to refrain from using confidential information to poach clients or employees from the party that disclosed the information. While it can be a standalone document, the non-solicitation clause is often inserted into other contracts.

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Applicable to all 50 states
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Our documents are vetted by lawyers and are applicable to all 50 states.