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Also known as: Non-Disclosure Agreement, confidentiality agreement

NDA

FoundationalDocumentsLegal

Definition

NDA: A Non-Disclosure Agreement (NDA) is a legal contract protecting confidential information shared between parties. NDAs define what's confidential, how information can be used, and consequences of breach. Common in partnerships, hiring, and investor discussions, though many VCs won't sign NDAs for initial meetings.

Example Usage

β€œWe require NDAs before sharing detailed product roadmaps with potential partners. For VC pitches, we share high-level info without NDAs.”

Common Misconceptions

VCs always sign NDAs. Most won't for initial meetings; they see hundreds of similar ideas and can't risk conflicts.
NDAs guarantee protection. Enforcement is difficult and expensive; trust and reputation matter more.
One NDA fits all situations. Mutual vs. one-way, scope, and duration should match the relationship.

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