Non-Disclosure Agreement (NDA) Meaning

What is a Non-Disclosure Agreement (NDA)?

A Non-Disclosure Agreement (NDA) is a legal contract between two or more parties that outlines confidential information that the parties wish to share with one another for specific purposes but wish to restrict from wider use or dissemination. NDAs are used to protect sensitive information and maintain confidentiality.

Key Features of Non-Disclosure Agreements (NDA)

  • Confidential Information: Defines what information is considered confidential.
  • Obligations: Specifies the obligations of the parties to protect the information.
  • Duration: Sets the time period for which the information must be kept confidential.
  • Exclusions: Lists any exclusions to the confidentiality obligations, such as publicly available information.

How Does a Non-Disclosure Agreement (NDA) Work?

An NDA works by legally binding the parties involved to maintain the confidentiality of shared information. It outlines the scope of confidentiality, the responsibilities of each party, and the consequences of breaching the agreement. NDAs can be mutual, where both parties share confidential information, or unilateral, where only one party discloses information.

Best Practices for Using NDAs

  • Clearly Define Terms: Ensure the terms of the NDA are clear and specific about what constitutes confidential information.
  • Limit Access: Restrict access to confidential information to those who need to know.
  • Monitor Compliance: Regularly monitor compliance with the NDA terms.
  • Seek Legal Advice: Consult with a legal professional to draft and review NDAs to ensure they meet legal requirements.


Yes, NDAs are legally enforceable contracts, and breaching an NDA can result in legal consequences such as damages or injunctions.

The duration of an NDA is specified in the agreement and can vary depending on the nature of the information and the parties' needs.

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