What is a Non-Disclosure Agreement?

By | November 26, 2007

A Non-Disclosure Agreement (NDA), sometimes also called Confidentiality Agreement or Secrecy agreement, is a legal contract used where one party (the “Discloser”) will disclose its confidential information to someone else (the “Recipient”) and the Recipient agrees not to divulge this information to others. In simple terms, it is a contract through which the parties agree not to disclose information covered by the agreement. An NDA is useful in protecting trade secrets and other non-public business information. Sometimes Confidentiality Agreements are used by two companies considering doing business together who need to understand the processes used in one another’s businesses solely for the purpose of evaluating the potential business relationship. Sometimes NDAs are signed by employees with a company at the time of being hired.

Some Non-Disclosure Agreements can be mutual and are called Mutual Non-Disclosure Agreement.

Definition of  Non-Disclosure Agreement, NDA, Confidentiality Agreement and Secrecy agreement.