In business, information is often as valuable as money. Non-Disclosure Agreements (NDAs) are used to protect confidential information shared with employees, partners, vendors or potential investors.
An NDA defines what counts as “confidential” — technical data, financials, customer lists, strategy, designs — and lays down restrictions on how it can be used and shared. The receiving party typically promises not to disclose the information to others or use it for any purpose beyond the defined business relationship.
Well-drafted NDAs specify the duration of confidentiality, exceptions (such as information already in the public domain), and remedies if the agreement is breached. They may include clauses on return or destruction of data at the end of the relationship.
However, NDAs are not magic shields. Once information leaks widely, damage may be hard to reverse. Still, having a signed NDA gives a strong legal basis to claim breach, seek injunctions and compensation, and deter misuse.
For both sides, clarity is key. A fair NDA protects genuine secrets without unreasonably locking in people from using their general skills and knowledge elsewhere.