A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between two or more parties. The purpose of an NDA is to ensure that certain information remains confidential and cannot be disclosed to non-authorized parties. NDAs are used to protect sensitive information and intellectual property (IP) by outlining in detail what information must remain private and what information can be shared or released to the public.

Some key elements of an NDA include:

• Identification of the participants
• Definition of what is considered to be confidential
• Duration of the confidentiality commitment
• Exclusions from confidential protection

NDAs can be used in a variety of situations, such as when a company is looking to sell itself, when two companies enter into discussions about doing business together, or when a company seeks venture capital from potential backers. NDAs can also be used to protect trade secrets when information is shared during the regular course of business.

There are different types of NDAs, including unilateral NDAs, which act as a one-way contract, and mutual NDAs, which are used when two parties disclose confidential information to each other. NDAs can be tricky and must be taken very seriously, as the language within the NDA must be precise so that a court can uphold any violations.

NDA templates are pre-written agreements that can be used as a starting point for creating a unique NDA between two or more parties that is applicable to their situation. The cost of creating an NDA typically ranges from $175 to $1,500.