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A non-disclosure agreement is a contract whereby two parties signing it agree not to disclose any confidential information outside of work. Non-disclosure agreements are generally made to protect business confidential.
For instance, you are doing some business and you have hired a few employees or contractors to do some work that requires sharing of some sensitive information with them. Now obviously, you don’t want that the employees/contractors to share the information with anybody. What you should do is enter into a non-disclosure agreement with them and prevent them from sharing it outside of work.
The main purpose of the non-disclosure agreement is to protect sensitive information. It is a legally binding contract between the two parties.
A non-disclosure agreement usually has the following clauses: