nda
Definition
An NDA is a contract where one or both parties promise to keep certain information private and not share it with outsiders. Businesses use NDAs to protect sensitive information like trade secrets, customer lists, pricing strategies, or new product ideas before sharing them with employees, contractors, or potential partners.
Example
Before showing a software developer your app idea and proprietary code, you would have them sign an NDA so they cannot legally share or use that information for their own purposes.
Watch Out
An NDA is only as strong as how clearly it defines what information is actually considered confidential, so vague language can make it nearly impossible to enforce.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.