What is a non-disclosure agreement?

Definition

A non-disclosure agreement, commonly abbreviated NDA, defines confidential information and the obligations of people or organizations that receive it. Terms can cover permitted use, disclosure, duration, exceptions and remedies.

Confidentiality can protect legitimate commercial information, but extensive secrecy during public-impact negotiations can reduce trust and informed participation. Project processes should distinguish genuinely sensitive material from facts communities need to evaluate local costs and benefits.

ELI5

A non-disclosure agreement is a contract that says specified confidential information cannot be shared or used outside agreed purposes. It normally defines what is confidential, who may receive it and how long the obligation lasts.

For example, a startup can ask a contractor to protect unreleased product details. The agreement should not be treated as a reason to hide information that affected communities or regulators are legally entitled to evaluate.

What does NDA mean?

NDA means non-disclosure agreement, a contract that limits the use or sharing of defined confidential information.

Why can NDAs affect community trust?

Residents may feel excluded when agreements prevent disclosure of project details that affect public decisions and local impacts.

  1. Nathaniel Whittemore beside the words Data Centers Lost Trust
Definition card for non-disclosure agreement: What is a non-disclosure agreement?

A non-disclosure agreement is a contract that restricts how specified confidential information may be shared or used.