vendor nda
Definition
A Vendor NDA (Non-Disclosure Agreement) is a contract between your business and a supplier or service provider that legally requires both parties to keep shared business information secret. You sign one of these when a vendor needs access to sensitive details about your operations, customers, or products to do their job, and you want to make sure that information stays private. Breaking this agreement can expose the violating party to lawsuits and financial damages.
Example
If you hire a software developer to build your customer database, you would have them sign a Vendor NDA before sharing any proprietary business processes or customer data with them.
Watch Out
Pay close attention to how long the agreement lasts and exactly what information counts as confidential, because vague language can make the contract hard to enforce if a vendor leaks your information.
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.