Nondisclosure Agreement (NDA)

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A Nondisclosure Agreement (NDA) is an agreement that stipulates that entities will not share confidential information, knowledge, or materials with unauthorized third parties.

• legal basis for protecting information assets
• ensures the confidentiality and protection of sensitive information shared during the relationship
• is a binding agreement
• likely to be signed alongside an MOU
• defines:
  • what uses of sensitive data are permitted
  • what storage and distribution restrictions must be enforced
  • what penalties will be incurred by breaches of the agreement
• used in:
  • contract of employment
  • between companies and contractors
  • between two companies
• can be two-way or one-way