NDA Non-disclosure agreement
Type of legal contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish to restrict access to or by third parties. In the contract the parties agree not to disclose information covered by the agreement. An NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. NDAs are commonly signed when two companies are considering doing business as a partners (joint ventures, strategic alliances, mergers and acquisitions) and need to understand the processes used in each other’s business for the purpose of evaluating the potential business relationship. NDAs can be “mutual”, meaning both parties are restricted in their use of the materials provided, or they can restrict the use of material by a single party. Non-disclosure agreements are also known as confidentiality agreements. Model of Confidentiality Agreement.