What is a non-disclosure agreement?
A non-disclosure agreement (NDA) — also called a confidentiality agreement — is a legally binding contract in which one or both parties agree to keep shared information secret. It identifies a disclosing party (who reveals the information) and a receiving party (who must protect it), and sets the rules for how that confidential information can be used.
People reach for an NDA before pitching an idea to an investor, hiring a contractor, evaluating an acquisition, or onboarding an employee who will see sensitive data. The agreement is the foundation for any relationship where trade secrets, financials, customer lists, or product plans change hands.
A non-disclosure agreement works like a rulebook for trust: it lets two parties speak openly because both know exactly what can and cannot be repeated. Get it right and it genuinely protects you; leave it vague and it becomes hard to enforce when it matters most.


