R
R
RockStar172021-04-01 14:31:27
Freelance
RockStar17, 2021-04-01 14:31:27

NDA and penalties - is it normal? theoretical implications?

Negotiating a contract with a foreign customer. Asks to sign an NDA. It has a clause - penalties:


Penalties.
In the case of any breach of the non-disclosure obligations detailed herein, the Party in breach shall pay a penalty of Euro 50,000 for each individual breach to the other Party.


translation:

Penalties.
In the event of any breach of the non-disclosure obligations set forth herein, the offending Party shall pay the other Party a fine of EUR 50,000 for each individual breach.


I'm not going to leak the customer's info, confidentiality is important, but it sounds harsh. I was looking for info on the net - opinions are different: -
from ask to delete -
before you are in different countries, this is all garbage

your opinion - is it worth signing this?
If not, what would you suggest to replace it with?

Answer the question

In order to leave comments, you need to log in

9 answer(s)
I
Ilya S, 2021-04-01
@Stalinko

-from ask to delete
-to you are in different countries, it's all bullshit

Both sentences are correct.
NDA, and indeed any agreements, when the parties are in different countries - a filkin's letter. Of course, he can sue you, but he can’t do anything with you remotely. And vice versa, if you want to achieve something from him, you are unlikely to sue at the place of residence of the customer. It will cost sooooo much.
If you don't care, then you can score.
I do not like such things, so I would remove this item. Well, either reduced the amount to an adequate one. For example 1000 euros.

K
Konstantin B., 2021-04-01
@Kostik_1993

I am generally not against NDA, but with adequate requirements. Firstly, the amounts should not be wild. The second is confidential data, they must be clearly stated and spelled out. Well, thirdly, and most importantly, it should be spelled out what is the very disclosure. For example, you should not be responsible for the fact that the customer sent you something by mail, but it was hacked by technical means, not when you forgot your login and password on a piece of paper in a cafe, but when your account was hacked, for example, by guessing a password. Although this is also a controversial point, but you protected the data, which means you should not be held accountable for their loss through no fault of yours

J
Julia Bedrosova, 2021-04-02
@Bedrosova

Be careful, you can get on the sanctions list, and then you will not be able to buy a villa in Florida.

D
Dimonchik, 2021-04-01
@dimonchik2013

the consequences can be
asked to be removed, replaced with "a court in such and such jurisdiction"
in general, papers should not be treated negligently

Z
Zettabyte, 2021-04-01
@Zettabyte

NDA is a serious matter and is familiar to many corporate clients.
According to my profile, it is generally clear that I am not a freelancer, and our customers are within the country, but even in Russia, a sufficient number of corporate clients ask for a non-disclosure agreement.
NDA should not be treated negligently, especially for many different kinds of disclosure of information, which may seem insignificant to an individual, is really sensitive.
How to act for you - I think that it is worth evaluating in terms of your opinion about the client, trust in him. Where is the extreme case - that he, for example, decides to invent this disclosure in order to somehow blackmail you, or refuse to pay.
I believe that it is really worth fixing the points regarding how the fact of violations should be proved, as well as what exactly this violation is, and in what jurisdiction disputes regarding this issue should take place.

C
CityCat4, 2021-04-01
@CityCat4

Hm. And what are the chances for this customer to fulfill his threat and how is he going to do it?

P
Puma Thailand, 2021-04-02
@opium

He will not be able to pursue you in Russia, so you can score

L
lotse8, 2021-04-08
@lotse8

This information is not enough. You need to look at the amount of the contract and what data will be transmitted from the customer in what way. If the amount of the contract is 1000, and for each violation a fine of 50,000, then you need to send a forest and not get involved. Or put an ultimatum that the fine cannot exceed a certain amount, otherwise there will be no contract.
By data transfer. Will send you an open source library, and then present it for its distribution. Or something like that. Everything needs to be looked at in detail.
It can also sue in the Russian Federation - for example, an English kampashka successfully sues copyright infringement in the Russian Federation for Peppa pig, even from an individual entrepreneur.

Didn't find what you were looking for?

Ask your question

Ask a Question

731 491 924 answers to any question