Non-Disclosure Agreement (NDA)
A legal contract that prevents one or both parties from disclosing confidential information shared during the course of a business relationship.
A Non-Disclosure Agreement (NDA) — also called a Confidentiality Agreement — is a legal contract under which one or both parties agree not to share confidential information with outside parties. NDAs are commonly used in recruitment (to protect sensitive information shared during interviews), in employment contracts (to protect trade secrets and proprietary data), and in business negotiations.
NDAs can be unilateral (only one party is bound) or mutual (both parties agree not to share each other's information). They typically specify what information is considered confidential, the duration of the obligation, and the consequences of breach.
NDAs have come under scrutiny in recent years for their use in silencing employees about workplace misconduct. Several jurisdictions, including the UK and several US states, have enacted laws limiting the use of NDAs in harassment and discrimination settlements.