Nda Non Disclosure Agreement Definition
The term “NDA” or “non-disclosure agreement” is a contract used to protect confidential information from being shared. An NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. The NDA may be unilateral, meaning only one party is bound by it, or bilateral, meaning both parties are bound by its terms.
There are many types of NDAs, but the most common is the mutual NDA (or MNDA), which is used when both parties will have access to each other’s confidential information.
An NDA can be used in a variety of situations, such as when two companies are considering doing business together and need to share some information to determine if there is a fit, but they don’t want either company to be able to use that information for any other purpose if they decide not to do business together.
NDAs are also commonly used in employment situations. For example, an employer may ask a potential employee to sign an NDA before sharing sensitive company information during the interview process.
If you have been asked to sign an NDA, make sure you understand the terms before you sign it. You may want to have an attorney review the agreement if you have any questions or concerns.
