Definition of Non-Disclosure Agreement

A Non-Disclosure Agreement, or NDA as they are often called, is an agreement that two parties sign in order to protect the privacy of ideas and prevent the disclosure of those ideas to third parties.
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In any transaction where an entrepreneur will be disclosing sensitive and confidential information, it is highly advisable to have the other party sign a non-disclosure agreement.

When soliciting venture capital, however, you may find that many VC firms will not sign an NDA. They have the money, and therefore they have the power; so, you may find that you need to be less stringent about requiring a non-disclosure or confidentiality agreement.

Non-Disclosure Agreement References On This Site

These Gaebler.com articles mention this glossary term:

• Confidentiality When Selling a Business - But prior to releasing any information to potential buyers, they will need to sign a confidentiality agreement. A confidentiality agreement is a legal document describing what...
• Confidentiality Breach Can Ruin A Business Sale - Here are a few ideas: Request employees or partners to sign a non-disclosure agreement. While NDAs can sometimes have questionable legal standing if...
• Patent Infringement - If everyone to whom the invention has been disclosed signs a non-disclosure agreement, the invention has not been legally disclosed and the...
• Surviving Buyer Due Diligence - Without exception, buyers who reach the due diligence phase must sign a confidentiality agreement. If something arises during due diligence and they choose...
• Confidentiality When Selling a Business - But prior to releasing any information to potential buyers, they will need to sign a confidentiality agreement. A confidentiality agreement is a legal document describing what...
• Patent Infringement - If everyone to whom the invention has been disclosed signs a non-disclosure agreement, the invention has not been legally disclosed and the...
• Surviving Buyer Due Diligence - Without exception, buyers who reach the due diligence phase must sign a confidentiality agreement. If something arises during due diligence and they choose...
• Confidentiality Breach Can Ruin A Business Sale - Here are a few ideas: Request employees or partners to sign a non-disclosure agreement. While NDAs can sometimes have questionable legal standing if...