What is a Non-Disclosure Agreement (NDA)? It is a legally binding contract involving a confidential relationship between at least two parties. It is sometimes called a “confidentiality agreement” or the colloquial term “hush money.” The NDA contract could be between a business and an employee or a soon-to-be former employee. It can also be between two or more individuals for various reasons, like protecting a secret recipe or guarding personal information about a partner or colleague. In simple terms, an NDA is a legal agreement to keep specific details private in personal or business relationships.
Ever notice how many famous people who divorce don’t spill all the details publicly? Why is this? It is to protect the intimate details about finances, success, failures, or highly personal information that the public does not need to know. Think “private life” vs. “public life.”
Similarly, in business, confidentiality could mean legally protecting specific financials, secrets, processes, details about potential deals, or other sensitive information. Some employees may be required to sign an NDA, while others are not.
NDAs Are Legal Documents
Remember, NDAs are legal, binding contracts. If that contract is broken, legal actions could be brought against the violating party. However, depending on the state in which the contract is valid, a statute of limitations says you can only seek retribution for a certain length of time. After that time passes, no action for violating the contract can be taken against the offending party.
From time to time, Non-Disclosure Agreements make news headlines. The news business thrives on our desire to know other people’s business. In journalism circles, “if it bleeds, it leads.” That’s why bad news sells. What would be publicly beneficial is if the breach of the NDA contract was treated as an example to be learned from, not a news event to be exploited.
Have you had a personal experience with an NDA? Tell us, but keep it brief (a few facts) and guard the privacy of others. When commenting, do not name any president, prominent person, or political party. It leads only to uncivil discourse. I will delete those comments. No additional pictures or links, please.
This is Common Sense Civics and Citizenship.🇺🇸
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