A Non-Disclosure Agreement (NDA) is a contract between 2 people or companies to enforce confidentiality of information shared. Businesses especially require NDAs when sharing their trade secrets and sensitive client and business data with vendors, traders, customers or service providers.
A Non-Disclosure Agreement binds the people signing them to protect the information mentioned in the contract and prevents them from sharing any such information to a third party. An NDA can be a mutual NDA whereby both the parties share information with each other and a non-mutual or unilateral NDA whereby one party shares its information with each other.
The agreement is drafted by the lawyer based on the information provided. The NDA is sent back for any changes or approval. In case of changes needed, the lawyer amends the agreement and sends it back for final approval. Once the document is approved, it is signed by both the parties.