Business Contracts5 min readFebruary 22, 2026
Understanding NDA Agreements: When and How to Use Them
Protect your business secrets with a properly drafted NDA. Here's what you need to know.
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Understanding NDA Agreements
A Non-Disclosure Agreement (NDA) is a legally binding contract that protects confidential information shared between parties.
When to Use an NDA
- Business partnerships - Before sharing trade secrets
- Hiring employees - Protecting company information
- Investor meetings - Pitching your startup
- Vendor relationships - Sharing proprietary processes
Types of NDAs
Unilateral NDA One party shares confidential information with another.
Mutual NDA Both parties share confidential information with each other.
Key Clauses to Include
- 1Definition of confidential information
- 2Obligations of receiving party
- 3Exclusions from confidentiality
- 4Term of agreement
- 5Return of information
- 6Remedies for breach
Common Mistakes to Avoid
- Being too vague about what's confidential
- Setting unrealistic time periods
- Not including exclusions
- Forgetting jurisdiction clause
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