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Glossary · Management

NDA

Non-disclosure Agreement

In plain language

A signed agreement that stops someone from sharing the private information you give them.

The metaphor

Like a promise made before you show someone the recipe: they agree to keep it to themselves.

Going deeper

How it works

  • It names what counts as confidential.
  • It states how long the promise lasts.
  • It covers staff, contractors and partners.
  • A lawyer should draft or review it for important deals.
In practice
  • A firm asks a contractor to sign before seeing client files.
  • An owner shares financials with a buyer under one.
  • A designer signs before seeing a client's launch plans.

A question owners ask

Does an NDA protect me if the other side breaks it?

It gives you something to enforce, and a lawyer can tell you how.

Related terms
ALEAnnualized Loss ExpectancyAROAnnualized Rate of OccurrenceAUPAcceptable Use PolicyBackupBCPBusiness Continuity PlanningBIABusiness Impact AnalysisBPABusiness Partners AgreementBYODBring Your Own Device

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