What Is a Non-Disclosure Agreement?
A Non-Disclosure Agreement is a formal document obligating one party to keep the other party's private information confidential and to secure it from third-party access. The term is used interchangeably with "Confidentiality Agreement Template," which is a type of document that also deals with securing sensitive information.
- Proprietary Information Agreement.
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NDA agreements can be divided into two types: mutual NDAs and unilateral NDAs. By signing a mutual agreement, both parties agree not to disclose any sensitive data that belongs to the other party. Usually, these agreements take place when businesses share protected communications. In unilateral agreements, only one party is responsible for the non-disclosure of information. Upon signing the contract, the third party – for example, an employee, a contractor, or a partner – is bound by law to keep all sensitive information under wraps.
The templates featured below include the following:
- Generic Non-Disclosure Agreement. This legal contract legally prevents the parties from disclosing certain information that is deemed to be confidential by this agreement.
- Employee Non-Disclosure Agreement. Employers can use this agreement to protect their confidential information, which can include know-how, trade secrets, software, customer base, technical data, and other types of proprietary information.
Is a Non-Disclosure Agreement Legally Binding?
If an individual or a business wishes to protect their private information from being freely shared by any third party that has access to that information, they should have that party sign an NDA before allowing them access to any confidential data. Doing that helps protect intellectual property, trade secrets, and other proprietary information from getting into the wrong hands.
Generally, all NDAs are court-enforceable when they meet the general requirements of a contract. Factors that may render a Non-Disclosure Agreement unenforceable include:
- Overly broad language;
- Illegality (i.e., when the performance of the contract must require you to commit a crime);
- Insufficient consideration;
- The risk to public health and safety;
- Confidentiality Issues (i.e., when the information sought to be protected is not actually confidential and is determined to be publicly available).
Related Forms and Templates:
This is a legal contract that prevents parties to an agreement from disclosing certain information that is deemed to be confidential.
Businesses can use an agreement such as this to protect different types of confidential information, which can include know-how, trade secrets, software, client base, technical information, data about goods produced by the company, and other types of proprietary data.