nda (non-disclosure agreement)
Definition
An NDA is a contract where one or both parties promise to keep certain information secret and not share it with outsiders. Businesses use these to protect sensitive information like trade secrets, business plans, customer lists, or product ideas when working with employees, contractors, or potential partners.
Example
Before sharing your secret recipe with a potential manufacturing partner, you would have them sign an NDA so they cannot legally turn around and share that recipe with your competitors.
Watch Out
An NDA is only as useful as your willingness to enforce it, so make sure you clearly define exactly what information is considered confidential, otherwise a court may find the agreement too vague to uphold.
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.