In inter-company relations or between employees and suppliers and companies, sensitive information is often handled whose public knowledge could cause damage to the organization, so it is necessary to sign a confidentiality agreement. In this post, we want to tell you the benefits and the steps to follow to sign an NDA electronically.
The NDA (Non-Disclosure Agreement) physical signature entails several inconveniences:
- The agreement must be printed on paper, so paper, ink and electricity are used.
- The Parties must travel to sign and, they will use energy to do so, mainly when the parties live in different countries or cities.
- The entire process is time-consuming, so the signature could be delayed for several days resulting in a delay in starting the activity or signing a contract.
When can I use an NDA signature?
NDAs are confidentiality agreements usually signed to protect products, processes, services or business or labour relationships. The NDA signature entails that if a party discloses the information qualified as confidential, it will have to face the legal effects of that fact, compensations, lawsuits, etc
In the corporate field, NDAs are used in the following cases:
- When an entrepreneur introduces a new project to his investors or potential partners, an NDA is usually signed so that the information is not disclosed so that it does not get to competitors or the market.
- If employees or partners have access to financial information of the company or strategies of the organization.
- When contracting an employee or executives
- When a supplier is contracted.
- When purchasing or selling a company or an asset.
The list goes on and on, and in the business environment, NDAs are used to protect the information exchanged.
Benefits of digitally signing an NDA
The electronic or digital signature of an NDA entails several benefits such as the following:
- The document can be signed anytime and anywhere, irrespective of the location of the parties.
- The contract or the activity between the companies can be signed or initiated earlier.
- You can track the signature and know who has signed, who has not and send notices to pending signatories.
- If the signature of the confidentiality agreement must be evidenced in court, the electronic evidence generated during the signing process serves as evidence in court.
- In Click & Sign, you pay per use with no additional fees or maintenance.
What are the steps to sign an NDA electronically?
To sign an NDA electronically with Click & Sign, the following steps can be followed:
- First, the NDA to be signed must be drawn up. The document must specify:
- The identifying data of the parties.
- Information that is deemed confidential.
- The term of the confidentiality agreement. The NDA may be valid until the end of the contract or for several years, depending on the type of data to be protected.
- The penalty if one of the parties does not respect the agreement.
- Next, you must register with Click & Sign and create your profile to access the back office.
- The next step is to set up the document to be sent for signing. You will have to include the type of signature (several can be combined) and how the signature is activated.
- The next step is to select the template you want to use for the email or SMS with which you will send the link of the document to sign, add the NDA you want to sign and set up the documentation to be provided by the signatories (ID cards, for example).
- After that, you can track the sending through the back office to know who has signed the NDA and at what time, who has not yet signed and when the signature process has been completed.
- Based on all the information of the NDA digital signature process, Click&Sign generates documentary evidence that includes the signature data: identification of the signatories, signed documents, dates of every step of the process, etc. You will be able to download the documentary evidence whenever you need it, and Click & Sign’s platform will store the information for five years.
As a result, entering into an NDA electronically brings numerous advantages to companies and represents a leap towards a digital transformation that facilitates and simplifies day-to-day work. To sign an NDA electronically is fully enforceable; do not hesitate to try electronic signatures if we have persuaded you of the many benefits they provide.