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A non-disclosure agreement (NDA), also known as a confidentiality agreement, is a legal contract between at least two parties that outlines confidential materials or knowledge the parties wish to share with one another for certain purposes while, at the same time, restricting one another from disclosing that information to others. NDAs are commonly signed when two parties are considering doing business and need to understand the processes used in each other's business, for the purpose of evaluating the potential business relationship, or when a party has an invention or some other information that he or she wants to go to market with and needs third party help to do so, typically in the form of investment, prototyping and manufacturing support, marketing expertise, or other such consultaion. NDAs can be "mutual," meaning both parties are restricted in their use of the materials provided, or they can restrict the use of material by a single party. It is also possible for an employee to sign an NDA or NDA-like agreement with an employer. In fact, some employment agreements will include a clause restricting employees' use and dissemination of company-owned "confidential information." |























