Non-Disclosure Agreements: What You Need To Know

An organization's most valuable assets often lie in its non-public, sensitive and proprietary information – commonly referred to as confidential information. Such confidential information often includes the organization's "crown jewels" and should be protected accordingly.

An effective way to protect confidential information, prior to its disclosure, is to execute a written confidentiality and non-disclosure agreement (NDA). An NDA is a legally binding agreement or contract that prohibits a person from disclosing another person's sensitive or confidential information to third parties or using the information for a purpose not otherwise permitted by the party disclosing the information.