non-disclosure
Definition
Non-disclosure is a legal obligation where one or both parties agree to keep certain information secret and not share it with outsiders. Businesses typically use a non-disclosure agreement (NDA) to protect sensitive information like trade secrets, business strategies, or client lists before entering into a partnership or hiring process.
Example
Before showing a potential business partner how your proprietary software works, you would have them sign a non-disclosure agreement so they cannot turn around and share that information with your competitors.
Watch Out
Make sure your NDA clearly spells out exactly what information is considered confidential, because vague language can make the agreement nearly impossible to enforce if someone breaks it.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.