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Nondisclosure Agreement (NDA)

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    Deciding What is Confidential

    • An NDA should specify what is and what isn't confidential material. Clearly, information already within the public domain should not be confidential. The point of an NDA is to keep nonpublic knowledge nonpublic.

    Legal Action Made Easier

    • An NDA establishes that an individual has promised not to disclose specified information. Therefore, should that person break the agreement, legal proceedings would heavily favor the litigant who initiated the NDA.

    One-Way or Two-Way

    • Nondisclosure agreements can be one-way, in which case only one party is protected, or two-way, in which case both parties are protected. Two-way NDAs are useful when both parties have trade secrets that require protection under the agreement. One-way agreements are typically used when a person works for a company in either a consulting role or a full-time capacity.

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