Non-Disclosure Agreement (NDA)
Definition of 'Non-Disclosure Agreement (NDA)'
NDAs are used to protect confidential information, such as trade secrets, financial information, or other proprietary information. They can be used in a variety of business settings, such as when two companies are negotiating a merger or acquisition, when a company is hiring a new employee, or when a company is working with a third-party vendor.
NDAs are typically drafted by lawyers and should be reviewed by both parties before they are signed. The terms of an NDA will vary depending on the specific circumstances, but they typically include provisions that:
* Define the confidential information that is covered by the agreement.
* Specify the obligations of the parties to keep the confidential information confidential.
* Set forth the consequences of breaching the agreement.
NDAs are an important tool for protecting confidential information. By entering into an NDA, the parties can be confident that their confidential information will be protected.
Here are some additional details about NDAs:
* NDAs can be either unilateral or bilateral. A unilateral NDA is an agreement that only one party is obligated to keep the information confidential. A bilateral NDA is an agreement that both parties are obligated to keep the information confidential.
* NDAs can be either limited in time or perpetual. A limited-time NDA is an agreement that expires after a certain period of time. A perpetual NDA is an agreement that does not expire.
* NDAs can be either exclusive or non-exclusive. An exclusive NDA is an agreement that prohibits the receiving party from disclosing the confidential information to any other party. A non-exclusive NDA is an agreement that allows the receiving party to disclose the confidential information to other parties, but only under certain circumstances.
NDAs are a valuable tool for protecting confidential information. By understanding the basics of NDAs, you can make sure that you are using them effectively to protect your company's confidential information.
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