Non Disclosure Agreement

Key Highlights

• An NDA, or Non-Disclosure Agreement, is a legal agreement where two or more parties agree to keep certain information private and not share it with others.

• Types of NDAs include unilateral, bilateral and multilateral NDA.

What is Non-Disclosure Agreement (NDA)

An NDA, or Non-Disclosure Agreement, is a legal agreement where two or more parties agree to keep certain information private and not share it with others. It’s like a promise to not spill secrets, often called a confidentiality agreement or secrecy agreement.

Types of NDAs

• Unilateral NDA: It includes only one party sharing confidential information, and the other agrees to keep it private.

• Bilateral NDA: Think of this as a mutual pact—both parties exchange sensitive information and commit to protecting each other’s secrets.

• Multilateral NDA: It involves three or more parties and ensures everyone is on the same page about keeping things confidential.

Why Use an NDA?

NDAs protect sensitive info during business deals, partnerships, hiring, or product development. They’re common in negotiations, mergers, or when employees handle private data.

Legal Effect

An NDA legally binds you to keep things confidential. Breaking it can lead to lawsuits or fines. But, NDAs don’t work for illegal stuff or if they go against public rules.