How to Submit an NDA

What Is a Non-Disclosure Agreement (NDA)?

A non-disclosure agreement is a legally binding contract that establishes a confidential relationship. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others.

Non-disclosure agreements are common for businesses entering into negotiations with other businesses. They allow the parties to share sensitive information without fear that it will end up in the hands of competitors. In this case, it may be called a mutual non-disclosure agreement.

KEY TAKEAWAYS

An NDA acknowledges a confidential relationship between two or more parties and protects the information they share from disclosure to outsiders.
The NDA is common before discussions between businesses about potential joint ventures.
Employees are often required to sign NDAs to protect an employer's confidential business information.

The Non-Mutual Agreement

Such agreements also are often required of new employees, if they may have access to sensitive information about the company. In such cases, the employee is the only party signing the agreement.

An NDA may also be referred to as a confidentiality agreement.