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Simple English definitions for legal terms
nondisclosure agreement
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A quick definition of nondisclosure agreement:
A nondisclosure agreement (NDA) is a contract that says you promise to keep a secret. If you sign an NDA, you can't tell anyone else what you learned or saw. This is used to protect important information, like secrets about a company or a new invention. If you break the NDA and tell someone the secret, you can get in trouble and be sued. The NDA can last forever or have an end date. It's important to follow the NDA to protect the person or company who shared the secret with you.
A more thorough explanation:
A nondisclosure agreement (NDA) is a legal contract that ensures certain information remains confidential. When someone signs an NDA, they agree not to share any information included in the contract with anyone who is not authorized to know it. NDAs are commonly used to protect trade secrets, client information, and other sensitive or valuable information.
For example, if a company is developing a new product, they may require employees or contractors to sign an NDA to prevent them from sharing any details about the product with competitors or the public. Similarly, if a business is sharing confidential financial information with a potential investor, they may require the investor to sign an NDA to protect that information.
If someone violates an NDA by sharing confidential information, they can be sued for breach of contract. NDAs can last indefinitely or have a specific end date. However, courts will only enforce NDAs to the extent necessary to protect the interests of the party who created the agreement.