Non Disclosure Agreement Definition
A non-disclosure agreement (NDA) is a legally binding contract between two parties, typically used to protect confidential information or trade secrets. The party disclosing the information, known as the discloser, agrees not to share it with anyone else. The party receiving the information, known as the recipient, agrees not to use it for any purpose other than what was agreed upon.
NDAs are commonly used in business transactions, especially when one company is considering investing in or partnering with another. They can also be used in employment agreements to protect a company’s proprietary information. In some cases, an NDA may also be referred to as a confidentiality agreement (CA), confidential disclosure agreement (CDA), proprietary information agreement (PIA), or secrecy agreement.
