Small Business Glossary and Definitions

A Nondisclosure agreement is a contract between an employer and an employee that states the employee may not share, or disclose, any of the trade secrets that he or she learns while employed. This can be information such as new products in development, concepts on how a company should run, company practices or many other things. Some NDAs are for specified amounts of time, while other cases the NDA is binding forever. These contracts can be enforced by law. A well-written NDA will outline exactly what information is confidential and what is not, since this can vary widely between agreements.