Aca Or A Non Disclosure Agreement

1391 Words Dec 17th, 2014 6 Pages
Question No. 1
Part A:
Answer. ACA or a non-disclosure agreement is a contract between two parties agreeing to confine information provided by one party to the other, from third parties. It is essential for both parties to maintain trust between each other and to since BTOC is the first interested financial investor for LOL, it is necessary that the terms are kept confidential from the market to avoid possible damage to repute. Also, no formal contract has yet been signed between the parties; therefore, any information being shared is not public information (Maguire, Murchison & Jaeger, 2012).
The confidentiality agreement is essential to cover all proprietary assets, which includes all customer and supplier information, intellectual property information, pricing and costing information, trademarks and copyrights, trade secrets and all other financial statements of BTOC. The confidential agreement must also cover the subsidiaries that the BTOC has with respect to a potential transaction which is normally considered as the purchaser agreed not to disclose until he has made the sale process with public.

Part B:
Answer. If no agreement is signed, LOL is at greater risk of information being shared with third parties. The research material shared with BOTC for financial assistance may get to the market before its right time. LOL can get into legal, reputational or marketing issue as it holds potential additional information regarding the site.
If there is no agreement signed…
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