The first step in negotiating NDAs in the incentives context is to know your counterparty. Second, review the appropriate state law.A real estate NDA requires signees to maintain confidentiality for property related information received during a real estate transaction. They say loose lips sink ships. Learn how to protect yourself with a producer's guide to non-disclosure agreements. Non-disclosure agreements are not illegal. They are perfectly legal. The nondisclosure agreement became a tool for powerful people to stymie journalists from informing the public. I disclosed to a minority partner that the majority partner owed him 100k. Hearsay is an out of court statement offered to prove the matter asserted.