HR Terminology

Non-disclosure Agreement (NDA)

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  7. Non-disclosure Agreement (NDA): Definition

A Nondisclosure Agreement (NDA) serves as a legally binding contract designed to safeguard sensitive information exchanged between two or more parties during a business relationship.

NDAs are frequently utilized to shield proprietary information, trade secrets, business strategies, intellectual property, and other confidential materials from unauthorised disclosure or use.

FAQ

NDAs are crucial for protecting sensitive information shared between parties during business dealings, collaborations, or any other scenario where confidentiality is paramount. They legally bind parties to maintain secrecy and prevent the unauthorized disclosure of sensitive information.

NDAs can cover a wide range of confidential information, including trade secrets, business plans, financial data, proprietary technology, customer lists, and any other information that the parties deem valuable and sensitive.

Any parties involved in a business relationship where confidential information is exchanged may sign an NDA. This could include employees, contractors, vendors, partners, investors, or anyone else privy to sensitive information.

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