NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. An NDA is a legal document that protects your business information and trade secrets from vendors, employees, and third parties.Non-disclosure agreements are legal contracts that prohibit someone from sharing information deemed confidential. A nondisclosure agreement (NDA) is a legally binding contract that establishes a confidential relationship between two parties. Confidentiality agreements are very useful to prevent unauthorized disclosures of information, but they have inherent limitations and risks. Why Have a Written Confidentiality Agreement? • Confidentiality agreements are standard and an expected part of most negotiated deals. NDAs are vital for safeguarding sensitive data in business transactions. Non-disclosure agreements are legally enforceable contracts.