A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legal contract between at least two parties that identifies confidential information that the parties wish to share with one another for some purpose, but wish to restrict access by third parties.
With a non-disclosure agreement, the parties agree not to disclose information covered by the agreement. An NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. An NDA protects non-public business information.
Non-disclosure agreements are often signed when two or more parties are considering doing business together and need to learn more about each other’s business in order to evaluate a possible relationship. It is also common for employees to sign an NDA with an employer. Employment contracts commonly include nondisclosure provisions to protect the employer’s confidential information.
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