Non-Disclosure Agreement (NDA)

Non-Disclosure Agreement (NDA)

A contract that ensures confidential information shared between parties remains undisclosed to third parties.

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Description

A Non-Disclosure Agreement (NDA) is a legally binding contract that protects sensitive information from being disclosed to unauthorized parties. Businesses and individuals use NDAs when sharing proprietary data, trade secrets, or business strategies. NDAs can be unilateral (one party discloses information) or mutual (both parties share confidential details). Common elements include definitions of confidential information, obligations of the receiving party, exclusions, and the duration of confidentiality. NDAs are widely used in business deals, employment contracts, mergers and acquisitions, and product development. Violating an NDA can result in legal consequences, including financial penalties and injunctions.