What is "Non-Disclosure Agreement (NDA)" meaning?

A Non-Disclosure Agreement, commonly known as an NDA, is a legal document that ensures sensitive information remains confidential between parties. It’s widely used in business settings like partnerships, product development, client onboarding, or hiring, especially when proprietary knowledge or trade secrets are involved.

Example

“Before pitching his startup idea to investors, he asked them to sign an NDA to protect his concept.”

How is "Non-Disclosure Agreement (NDA)" used in business?

In business, NDAs are used to safeguard intellectual property, strategic plans, or any confidential data during discussions, negotiations, or collaborations. They help maintain trust, reduce risk, and create a formal obligation to protect private information.

Pro Tip

Always read the scope and duration of an NDA carefully—overly broad or long-lasting agreements can limit your flexibility later on.

Related Terms

Confidentiality Clause, Intellectual Property, Licensing Agreement, Trade Secret