A Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a legally binding contract between two parties. Here’s a brief description:
- An NDA is used when one party shares sensitive information with another, and the recipient agrees to keep it confidential. This information can be technical, commercial, or valuable in nature, such as trade secrets or proprietary data.
- Both parties sign the NDA, creating a legal framework to protect the shared information from being publicly disclosed, stolen, or used by third parties (including business competitors).
- Common scenarios for using an NDA include:
- Business discussions: When discussing potential collaborations, partnerships, or investments.
- Hiring: When bringing on employees, freelancers, or contractors.
- Working with investors: To safeguard sensitive details during negotiations.
