Non-Disclosure Agreement

A Non-Disclosure Agreement (or “NDA” or “Confidentiality Agreement”) is a contract by which one party agrees to keep in confidence information that is disclosed to it by another party. NDAs are commonly used in connection with the buying and selling of businesses because in order for a potential buyer to perform its Due Diligence it commonly needs access to confidential information and the seller needs to be protected against that information being used for purposes other than to evaluate the potential transaction.