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It is often necessary for a company to share important and confidential information with other businesses, such as suppliers, funders or contractors. To protect your company’s confidential information, you can ask your partner to sign a confidentiality or nondisclosure agreement (NDA). The NDA is a legally binding contract that can protect your business secrets and give you protection against the theft of your proprietary information.

New businesses often revolve around innovations such as new inventions or delivering services in a novel ways. Companies sometimes choose to keep certain business information secret or confidential from the public and competitors. Confidentiality is often achieved by having employees and business partners sign confidentiality agreements or non-disclosure agreements. Such agreements act as contracts that obligate the signatory to keep certain information secret. Confidentiality can have several potential advantages and disadvantages.

CHRON