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A Non-Disclosure Agreement is a document that is used to protect confidential information that is disclosed by individuals or businesses in pursuance of a business relationship. It creates an enforceable agreement between the parties that they will not disclose or use the confidential information for any purpose other than the purpose of the business relationship.
It can be used either when only one party is disclosing confidential information (a "one way" disclosure) or when both parties are disclosing confidential information (a "two way" disclosure).
How to use this document
If only one party is disclosing confidential information, then the party disclosing the information usually drafts the Non-Disclosure Agreement. If both parties are disclosing confidential information, then either party may draft the Non-Disclosure Agreement.
The user should enter all the information required to complete the document. Once completed, the user should print at least three (3) copies of the document. Once the document has been printed and the attachments attached, if any, the parties should review and, if everything is found to be correct, sign all original copies of the document.
Notarizing the document
If the parties want to acknowledge the document, this document also contains an Acknowledgment. An Acknowledgment is an act of a person before a notary public stating that the signature on a document was voluntarily affixed by him and he executed the document as his free and voluntary act. Acknowledging the document is optional however, a document that is acknowledged before a notary public turns the document into a public document. Public documents are generally self-authenticating, meaning no other evidence will be needed to prove the execution of the document. Notarizing a Non-Disclosure Agreement is not mandatory.
If the document will be acknowledged, the parties should present themselves before a notary public with all the copies of the document and swear an oath to the foregoing. The parties should also bring a competent form of identification, such as a passport or driver's license. A competent form of identification is a current identification document bearing the photograph and signature of the respective party and should have been issued by an official agency.
If the document is acknowledged, the notary public will keep one original copy of the document. Both parties should each keep a copy of the document for their records.
The general laws on Contracts and Obligations found in the Civil Code of the Philippines are applicable. While there is no independent law that protects trade secrets, the Intellectual Property Code (Republic Act No. 8293), the Securities Regulation Code of 2000, the National Internal Revenue Code, the Toxic Substances and Hazardous and Nuclear Wastes Control Act of 1990 (Republic Act No. 6969), the Consumer Protection Act (Republic Act No. 7394), and the Revised Penal Code are some of the laws that offer protection to trade secrets.
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