NDA Document Definition
An NDA, or Non-Disclosure Agreement, is a legally binding contract between two parties that establishes a confidential relationship. The agreement defines what information can and cannot be shared by the parties, and sets forth the consequences for breaching the agreement.
An NDA can be used in a variety of situations, but is most commonly used when one party wants to share confidential information with another party without fear of that information being disclosed to third parties. For example, an inventor may want to share his invention with a potential manufacturer without fear of the manufacturer disclosing the invention to others. Or, a company may want to share trade secrets with another company while they are considering doing business together.
NDAs are typically signed by both parties before any confidential information is exchanged. Once signed, both parties are legally bound by the terms of the agreement. If either party breaches the agreement, they can be sued for damages by the other party.
