Non-Disclosure Agreement

A non-disclosure agreement (NDA) is a type of legal contract that establishes a confidential relationship between two or more parties. It serves as a protective measure, ensuring sensitive information shared between the parties remains private and is not disclosed to unauthorized individuals or entities. A good NDA clearly define who's involved, what information is considered protected and how long this protected information must be kept confidential. Such contracts are especially useful for companies that rely on proprietary technology or processes or need to protect other secret information. NDAs can also be used to protect private information, such as terms of a legal settlement.

When it comes to NDAs, there are two primary types to consider, each tailored to different scenarios.

• Unilateral NDA: This is a one-way street, where only one party (the disclosing party) shares confidential information with the receiving party. The receiving party is then bound by the NDA to maintain the confidentiality of that information.
• Mutual NDA: In a mutual NDA, both parties disclose confidential information to each other, and both are obligated to protect the other's information.