Contract Glossary
NDA (Non-Disclosure Agreement)
Definition
An NDA is a contract that says 'keep this secret.' You share confidential information, and the other party promises not to share it, use it for unauthorized purposes, or let it leak. Mutual NDAs protect both sides. One-way NDAs protect just one.
In Practice
Before hiring a freelance developer, you sign a mutual NDA. You'll share your product roadmap and customer database. They'll share their proprietary development framework. The NDA defines what's confidential (specific documents and databases — not 'everything we discuss'), how long the obligation lasts (3 years after the engagement ends), and what's excluded (anything that becomes public, was already known, or is required by court order).
Example Clause
The Receiving Party agrees to hold in confidence all Confidential Information disclosed by the Disclosing Party. The Receiving Party shall not, without the prior written consent of the Disclosing Party, disclose such Confidential Information to any third party or use it for any purpose other than evaluating the proposed business relationship between the Parties. This obligation shall survive for a period of three (3) years following the date of disclosure.
Common in these contract types
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Frequently asked questions about nda (non-disclosure agreement)
Before sharing anything you wouldn't want a competitor to know — business plans, customer lists, financial data, proprietary methods, unreleased product details. You need one before hiring contractors, entering partnerships, pitching to investors (some will refuse to sign, and that's their right), or discussing M&A.
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Create your contractThis content is for informational purposes only and does not constitute legal advice. For contracts with significant financial or legal implications, review by a qualified attorney is recommended.