Non-Disclosure Agreement
A non-disclosure agreement, or NDA, is a legal contract between two or more parties to safeguard proprietary or confidential information that may be shared during a business relationship. An NDA’s goal is to stop one party from disclosing confidential information to another or to third parties without their permission.
A definition of what information is considered confidential, the time frame within which the information must be kept confidential, the permitted uses of the information, and the consequences of breaking the agreement are typically included in the terms of an NDA. Depending on the nature of the relationship between the parties, NDAs may be unilateral or mutual.
NDAs are frequently used in partnerships, employment contracts, merger and acquisition negotiations, and other business settings. NDAs can also be used to safeguard proprietary information, trade secrets, and intellectual property. It is essential to painstakingly survey and arrange the details of an NDA prior to marking, as the outcomes of a break can be extreme and result in legitimate activity.