nondisclosure
Definition
Nondisclosure means keeping specific information secret and not sharing it with others. When you sign a nondisclosure agreement (often called an NDA), you are making a legally binding promise to protect confidential information that someone shares with you for business purposes.
Example
If a potential business partner shows you their secret recipe or proprietary software code during negotiations, they might ask you to sign a nondisclosure agreement so you cannot share that information with competitors or the public.
Watch Out
Breaking a nondisclosure agreement can expose you to a lawsuit and significant financial damages, so always read one carefully before signing and make sure you understand exactly what information you are promising to protect and for how long.
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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.