This is a contract by which the parties agree not to disclose the information covered by the agreement. An NDA creates a confidential relationship between the parties, usually to protect any type of confidential information and proprietary or trade secrets. Therefore, an NDA protects non-public business information. Like all treaties, they cannot be applied if the contractual activities are illegal. DDNs are often signed when two companies, individuals or other entities (such as partnerships, companies, etc.) are considering doing business and need to understand the processes used in the other`s activities to assess the potential business relationship. DDAs may be “reciprocal”, meaning that both parties are limited in their use of the materials supplied, or may restrict the use of materials by a single party. An employee may be required to sign an NDA or NDA-type agreement with an employer to protect trade secrets. In fact, some employment contracts contain a clause limiting the use and dissemination by employees of confidential information held by the company. In the case of disputes settled by transaction, the parties often sign a confidentiality agreement relating to the terms of the transaction.   Examples of this agreement are the Dolby brand agreement with Dolby Laboratories, the Windows Insider Agreement, and the Community Feedback Program (CFP) halo with Microsoft.
This Confidentiality Agreement (the “Agreement”) is entered into by and between ___ [insert name, transaction form and address] and ___ [name, transaction form and address of another person or company with whom you exchange information] collectively referred to as “parties” to prevent unauthorized disclosure of confidential information as defined below. The parties agree to establish a confidential relationship regarding the disclosure of certain protected and confidential information (the “Confidential Party”) by either (the “Disclosing Party”) to the other (the “Receiving Party”).