NDA stands for Non-Disclosure Agreement. In legal terms, it is a legally binding contract between two or more parties whose primary purpose is to protect sensitive information. The party disclosing information uses the NDA to ensure that the receiving party will not misuse it, disclose it to third parties, or handle it only in the manner agreed upon.
This agreement is a key tool in business relations. It is commonly signed before business negotiations begin, when new employees are hired who will have access to internal data, or when collaborating with external contractors. The contract precisely defines what is considered confidential information (e.g., trade secrets, know-how, customer data), specifies the duration of the confidentiality obligation, and outlines the penalties for breaching the agreement.
.png)
