Startup Dictionary
NDA
Definition
Non-Disclosure Agreement; a legal contract outlining confidential material that parties wish to share but restrict access to.
Deep Dive
A Non-Disclosure Agreement (NDA), also known as a confidentiality agreement, is a legally binding contract that establishes a confidential relationship between two or more parties. Its primary purpose is to protect sensitive information, trade secrets, and proprietary data that one party (the disclosing party) wishes to share with another party (the receiving party) but wants to restrict from being disseminated further. The agreement explicitly outlines what information is considered confidential, the obligations of the receiving party to protect it, and the potential legal consequences for breaching the terms.
Examples & Use Cases
- 1A startup presenting its groundbreaking technology to venture capitalists during a funding round
- 2An employer requiring new hires to sign an agreement protecting company trade secrets and client lists
- 3Two companies exploring a potential merger or strategic partnership sharing sensitive financial data
Related Terms
Intellectual PropertyTrade SecretConfidentiality Agreement