What is NDA (Non-Disclosure Agreement)?

The Short Answer

A legal contract that creates a confidential relationship between two or more parties, typically to protect sensitive information.

NDA (Non-Disclosure Agreement) explained simply

An NDA, or Non-Disclosure Agreement, is a legal document. It sets rules for information shared between people or companies. The main goal is to keep sensitive details private. This is common when discussing business sales, new products, or partnerships. It makes sure that secrets stay secret.

Real-World Example

Selling Your Business with an NDA

Imagine you are selling your pizza shop. You need to share financial records and customer lists with potential buyers. Before you show them these details, you ask them to sign an NDA. This agreement legally binds them to keep your business information private. If they share your secrets, you can take legal action.

Why this matters

NDAs are crucial for protecting your business secrets. Without one, sensitive information could be shared freely. This could harm your business, especially during a sale or partnership talks. It gives you peace of mind that your private data is safe.

LM
Luis MerchanBusiness

Always have an NDA in place before sharing any confidential business information. It protects your interests and gives you legal recourse if information is leaked.

Need expert guidance?

Don't navigate the buying process alone. Connect with a verified expert to help you find and close the right deal.

Find a Business Broker
What does an NDA protect?
When should I use an NDA?
Is an NDA legally binding?

About Venturu

Building a better way for business sales

We started Venturu because we believe buying or selling a local business should be simpler and more trustworthy. We're building the go-to marketplace that connects sellers, buyers, and expert brokers, providing free core tools to ensure a smoother, more successful experience for everyone involved.

Luis M.
Founder
Joel H.
Founder
Learn Our Story