A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legally binding contract between two or more parties that aims to protect sensitive information from being shared with others
. The purpose of an NDA is to create a confidential relationship between the parties, ensuring that they do not disclose any information covered by the agreement
. NDAs are commonly used in various situations, such as:
- Protecting a company's proprietary information, trade secrets, and client data
- Safeguarding sensitive information during business negotiations or potential joint ventures
- Ensuring that employees do not share confidential information with unauthorized parties
Key elements of an NDA include
:
- Identification of the participants
- Definition of what is considered to be confidential
- Duration of the confidentiality commitment
- Exclusions from confidential protection
There are different types of NDAs, such as mutual NDAs, where both parties are restricted in their use of the materials provided, and unilateral NDAs, where only one party (the disclosing party) anticipates disclosing certain information to the other party (the receiving party)
. NDAs are often used in combination with other legal documents, such as non- compete agreements, to provide a comprehensive level of protection for sensitive information
