What is the purpose of a Non-Disclosure Agreement (NDA)?

The purpose of a Non-Disclosure Agreement (NDA) is to legally prevent individuals from disclosing classified or sensitive information. This legal contract establishes a confidential relationship between the parties involved, ensuring that any proprietary or sensitive information shared during discussions or collaborations will not be disclosed to unauthorized parties. By signing an NDA, individuals agree to restrict their use of the sensitive information and acknowledge the potential risks of unauthorized disclosure, which can lead to legal consequences. This mechanism is crucial for protecting trade secrets, intellectual property, and other confidential data in various contexts, including business dealings and employment relationships.