What is an NDA?
A Non-disclosure agreement or NDA, is a confidential document between two parties that is comprised of information in which the two parties wish to share with each other. Developing an NDA is a crucial step in terms of managing a company because it’s important to be sure that important information remains confidential. The concept of an NDA is similar to the concept of sharing secrets among friends. Some secrets are told only to select people. These “secrets” would require an NDA to ensure that the information remains confidential.
Companies may use an NDA for a handful of reasons. For example, a company may use an NDA when hiring new employees in order to ensure that information about their company will not be spread or misused without consent. A formal NDA allows for legal implications to come into effect if the basis of the agreed upon NDA is violated. Referring to the analogy made earlier, if a friend goes behind your back and spreads your secrets, an NDA would legally “allow” you to punish your friend.
In summary, Non-disclosure agreements are an important part of a company and students and teenagers should continue to inform themselves on the importance of them.
