Non-Disclosure Agreement (NDA)

A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between two parties. The parties agree that sensitive information Shared will not be disclosed to third parties without authorization. NDAs are commonly used to protect proprietary information, trade secrets, and other confidential data in various business contexts.

Examples of NDAs include:

• Employee NDA: A company requires employees to sign an NDA to protect its trade secrets and proprietary processes.
• Partnership NDA: Two companies exploring a potential partnership may sign an NDA to ensure that any Shared business strategies remain confidential.

Cases involving NDAs may include:

• Corporate Espionage: A former employee discloses confidential information to a competitor, leading to legal action for breach of NDA.
• Startups and Investors: A startup may ask potential investors to sign an NDA before discussing sensitive financial information and business plans.