A nondisclosure agreement is a legal contract designed to facilitate confidentiality between two parties. NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information.A nondisclosure agreement (NDA) is a legally binding contract that establishes a confidential relationship between two parties. By signing an NDA, the parties agree that they will not share sensitive or proprietary information with competitors, the media, or the public. In a nutshell, if you are asked to sign an NDA, you are promising to keep secret any sensitive information shared with you and not share it with others. A mutual non-disclosure agreement (NDA) is a legal contract between at least two parties that outlines confidential material, knowledge, or information. An NDA is a legal document that protects your business information and trade secrets from vendors, employees, and third parties. Nondisclosure agreements are a necessary part of the sales cycle to protect both you and your clients.