nondisclosure agreement

One-sided or mutually binding agreement where the parties agree to protect the confidentiality of any discussions that take place or any information that changes hands. NDAs are frequently requested by entrepreneurs attempting to raise finance although very few venture capitalists will agree to sign. NDAs are often signed with suppliers by manufacturers, programmers, journalists, and others, in exchange for detailed information or copies of new products in advance of their public launch. For example, a manufacturer might sign an NDA to get a copy of a new operating system in order to have compatible hardware ready for the program's launch. NDAs are often required in order to participate in beta (pre-launch) tests of important pieces of software.