Non-Disclosure Agreement (NDA)
An NDA is a legal document between two parties, typically businesses, in which one party agrees not to disclose information shared by the other. An NDA creates a confidential relationship between the parties to protect any type of proprietary or sensitive information from being revealed.
An NDA can be either mutual or one-sided. A mutual NDA means that both parties are restricted from sharing any of the confidential information. A one-sided NDA means that only one party (usually the Disclosing Party) is restricted from sharing the confidential information.
Confidential information may include: business plans, processes, product designs, marketing strategies, and customer lists. NDAs are often signed when two companies are considering doing business together or entering into an agreement.