The Procurement Glossary » Non-Disclosure Agreement (NDA)

Non-Disclosure Agreement (NDA)

Contracts & Legal

Also known as: NDA, Confidentiality Agreement

Definition

A contract in which parties agree to keep shared information confidential and not disclose it to others.

Explanation

NDAs protect commercially sensitive information exchanged during sourcing, due diligence or partnership. They can be one-way or mutual, and define what is confidential, permitted uses, and how long the duty lasts.

Example

Before sharing volumes and specs in the RFP, the buyer has each bidder sign a mutual NDA.

Related terms

• Confidentiality — The obligation to protect and not disclose sensitive information shared under a business relationship.
• Due Diligence — The investigation of a supplier's legitimacy, capability, financial health and compliance before engaging it.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Terms and Conditions (T&Cs) — The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies.

Frequently Asked Questions

What is Non-Disclosure Agreement (NDA)?

A contract in which parties agree to keep shared information confidential and not disclose it to others. NDAs protect commercially sensitive information exchanged during sourcing, due diligence or partnership. They can be one-way or mutual, and define what is confidential, permitted uses, and how long the duty lasts.

Can you give an example of Non-Disclosure Agreement (NDA)?

Before sharing volumes and specs in the RFP, the buyer has each bidder sign a mutual NDA.

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