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Business Terms
Non-Disclosure Agreement (NDA)
Definition
A legal contract protecting confidential information shared between parties.
Overview
NDAs prevent disclosure of sensitive business information. They're common before discussing proprietary projects, business strategies, or technical details.
Example
Before discussing a new product concept, a company requires the contractor to sign an NDA.
Best Practices
Use when sharing sensitive information. Ensure terms are reasonable and enforceable.
Common Mistakes to Avoid
Overly broad terms
Not defining confidential information
Unreasonable duration
Frequently Asked Questions
When should I use an NDA?
Before sharing proprietary information, trade secrets, or sensitive business details.