What is an NDA?
A non-disclosure agreement (NDA) is a contract that keeps shared information confidential. Before two businesses explore a partnership, before you pitch an idea to an investor, or before a contractor sees your customer data, an NDA sets the ground rules: what is secret, how it can be used, and what happens if it leaks.
An NDA does two jobs at once. It creates a legal obligation to keep quiet, and it signals professionalism — that you take your confidential information seriously.
When do you need one?
Use an NDA whenever you are about to share information you would not want a competitor to see. Common moments include evaluating a potential business deal, hiring a freelancer or agency, raising investment, or discussing an acquisition.
If both sides will exchange sensitive information, choose a mutual NDA. If only one side is disclosing — for example, you are showing a prototype to a potential supplier — a one-way NDA is usually enough.
What goes into a strong NDA
A clear definition of what counts as confidential, a stated purpose that limits how the information can be used, sensible exclusions (so genuinely public information is not covered), and a realistic confidentiality period.
Optional clauses — such as return of materials, non-solicitation, or non-competition — can strengthen an NDA, but each should be used only when it fits the situation and the local law. Our generator lets you add or remove these and explains each one in plain English.