A non-disclosure agreement (NDA) is a legal contract that prohibits the recipient from sharing confidential information they receive from the disclosing party. NDAs protect businesses by restricting employees from disclosing trade secrets or proprietary information.
- A non-disclosure agreement (NDA) is a legal contract that prohibits the recipient from sharing confidential information they receive from the disclosing party.14 NDAs protect businesses by restricting employees from disclosing trade secrets or proprietary information.13 Key points about NDAs:An NDA creates a confidential relationship between the parties to protect non-public business information and trade secrets.3
- NDAs can be unilateral (one-way), bilateral (two-way), or multilateral (involving three or more parties).3
- NDAs typically restrict the recipient from disclosing the information, but do not prevent them from using the information for their own purposes, unless explicitly stated.23
- Violating an NDA can lead to legal action, including temporary restraining orders and monetary damages.2
- There are some exceptions where information covered by an NDA can be disclosed, such as if it has already become public knowledge.2