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A Non-Disclosure Agreement (NDA) is a contract under which one or both parties commit to keep specified information confidential. It is usually the first contract in any commercial conversation involving sensitive information — investor talks, acquisition discussions, supplier qualification, employee onboarding.
Before sharing confidential business information with a counterparty — a potential investor, a potential acquirer, a prospective supplier or customer, a new employee or contractor. NDAs are typically one-way (one party discloses) or mutual (both parties disclose); the right choice depends on the direction of information flow.
Definition of confidential information (including oral disclosures), the permitted purpose of disclosure, the recipient's confidentiality obligations, exceptions (publicly known, independently developed, required by law), duration of obligations (typically 2–5 years post-termination), return or destruction on request, and remedies for breach including injunctive relief.
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