What is a Non-Disclosure Agreement (NDA)? Definition or Meaning

A non-disclosure agreement or an NDA is a legal document that sets out the need to keep information confidential. This information could be commercially sensitive pricing figures, novel or proprietary processes that a company has developed or any details that the person who signs it agrees to keep secret.

For example…

Let’s say TrolleyMate were developing a shopping trolley that could be programmed with your shopping list and set off to pick items from shelves, check them out and arrive outside the shop to be picked up. Trolley Mate had to deal with several entities like shopping cart manufacturers, supermarkets, software and electronics developers et cetera. To protect their IP and allow the company to commercially benefit from the new invention, TrollyMate asked all parties involved, including its own staff to sign an NDA, just legally protecting itself from leaked information.