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A non-disclosure agreement (NDA), also called confidentiality agreement or confidential disclosure agreement, is a legal contract between two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain evaluation purposes, but wish to restrict from wider use or dissemination. It is a contract through which the parties agree not to disclose information covered by the agreement. An NDA creates a confidential relationship between the parties to protect any type of confidential and proprietary information or trade secrets. As such, an NDA protects non-public business information, and if the information is leaked, the injured party can claim breach of contract.
NDAs are commonly used when two companies, individuals, or other entities (such as partnerships, societies, etc.) are considering a relationship or collaboration and need to understand the other's processes, methods, or technology solely for the purpose of evaluating the potential of a business relationship. In this context, an NDA allows the parties to have open and honest communications allowing a better evaluation of such potential.
How to use this document
When considering a new business relation, NDAs maybe "mutual", meaning both parties are restricted in their use of the materials provided, or they may be "unilateral" and restrict the use of material by a single party.
This document will identify the details of the each of the parties, the length of time during which the agreement will run, and the specific purpose for which the confidential information will be disclosed.This non-disclosure agreement is robust, and will help ensure that your confidential business information is not divulged nor released by the other party involved.
In Canada, the majority of laws governing confidential information is derived from customs and judicial precedents (common law) rather than statutes.
In practical terms, this means there is no legislation to look for guidance on the subject, and non-disclosure agreements will be interpreted according to the body of common law applicable in the province or territory designated in the agreement.
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