Non-Disclosure Agreement (NDA)
Definition - What does Non-Disclosure Agreement (NDA) mean?
A non-disclosure agreement is an agreement between two parties in which one party promises not to expose particular information about the second party or information that is owned by the second party.
Non-disclosure agreements are commonly used in business to protect trade secrets. Violations of non-disclosure agreements can result in lawsuits.
Justipedia explains Non-Disclosure Agreement (NDA)
Breaking a non-disclosure agreement can sometimes be an extremely significant event. For example, if a tech company owns an algorithm and discloses the algorithm to another company under a non-disclosure agreement, the disclosing party could stand to lose millions of dollars if the second party reveals the algorithm to the public.
Certain critical pieces of information that are revealed in breaches of non-disclosure agreements can result in major lawsuits. Damages can be quite substantial in such cases.