What is a Non-Disclosure Agreement (NDA)?
A Non-Disclosure Agreement (NDA) is a binding contract that requires all signing parties to keep specific information confidential. Non-Disclosure Agreements are common in business and professional settings.
When a recipient of confidential information signs an NDA, it creates a written record that they agree to not reveal the specified information to any unauthorized people or organizations. If a recipient fails to keep the information private, the disclosing party may have the grounds to take legal action against them.
A Non-Disclosure Agreement is also called a/an:
- NDA contract
- Confidentiality agreement
- Confidential disclosure agreement
Although Non-Disclosure Agreements can be used in a variety of situations, our template is ideal for people navigating employment and business relationships where confidential information is being shared.
What can I use a Non-Disclosure Agreement for?
An NDA can be used in a variety of situations, such as the following scenarios:
1. Hiring an employee
If you’re hiring an employee who will have access to confidential information on the job, have them sign an NDA before hiring. This is especially important if some sensitive details will be discussed before the candidate becomes an employee. Confidential information could include your business’ marketing strategies, customer data, future ideas, and more.
A Non-Disclosure Agreement can protect you and your business interests by deterring your employees from sharing or misusing confidential information. If the employee breaches the agreement, you have the right to take legal action against them.
Alternatively, if you don’t want to create NDAs for your employees, and won’t need to discuss any trade secrets prior to hiring, you can include confidentiality clauses in Employment Agreements that will protect your sensitive business information.