Non-Disclosure Agreement (NDA)
A legal contract that requires parties to keep certain information confidential and not share it without permission.
What is Non-Disclosure Agreement (NDA)?
A Non-Disclosure Agreement (NDA) is a legal contract in which parties agree to keep certain information confidential, prohibiting disclosure to third parties without permission, often used for trade secrets, business strategies, or sensitive communications.
Why It Matters?
It protects proprietary information, maintains competitive advantage, and establishes enforceable legal obligations to prevent unauthorized use or disclosure.
Example
Two companies negotiating a merger sign an NDA to safeguard financial data and strategic plans from leaking to competitors.
Related Terms
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Litigation