A Non-Disclosure Agreement (NDA), often called a confidentiality agreement, is a legal contract between two or more parties. Its main purpose is to protect sensitive, confidential, or proprietary information from being shared or disclosed to unauthorized individuals or entities. NDAs are commonly used to maintain discretion in business negotiations, employee contracts, product development discussions, or intellectual property exchanges.
An NDA clearly defines what information is classified as confidential, outlining the responsibilities and limitations of all parties involved. Typically, an NDA will specify the scope of confidentiality, the duration of the agreement, and outline the legal consequences if the terms are violated.
Signing an NDA enables businesses and individuals to communicate openly without fear that their confidential information, such as trade secrets, financial data, or proprietary technologies, will be intentionally or accidentally shared. This helps build trust and confidence in commercial partnerships or employment scenarios.
Ultimately, NDAs play a crucial role in protecting intellectual property, preserving business integrity, and minimizing risks associated with unauthorized information disclosure.
