Non-Disclosure Agreement (NDA)

Types of NDAs:

1. Unilateral NDA – One party shares confidential information, and the other party agrees to keep it secret (e.g., employer-employee agreements).

2. Bilateral NDA (Mutual NDA) – Both parties share confidential information and agree not to disclose it (e.g., business partnerships).

3. Multilateral NDA – Three or more parties share confidential information and agree to keep it private.

Key Elements of an NDA:

• Definition of Confidential Information – Specifies what is considered confidential.

• Obligations of Receiving Party – Details how the recipient should protect the information.

• Exclusions from Confidentiality – Lists information that is not covered (e.g., publicly available data).

• Duration of Confidentiality – States how long the NDA remains in effect.

• Consequences of Breach – Outlines penalties for violating the agreement.

Why is an NDA Important?

• Protects trade secrets and business strategies

• Prevents competitors from accessing confidential information

• Builds trust in business relationships

• Provides legal recourse in case of information leaks