A nondisclosure agreement (NDA) is a legally binding contract that establishes a confidential relationship between two parties. California courts have long ruled that companies can use NDAs to protect certain financial, technical, and businessrelated information.NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. California law requires that you serve your spouse or domestic partner with a Preliminary Declaration of Disclosure before the divorce can be granted. A California non-disclosure agreement (NDA), or confidentiality agreement, is a legal document that safeguards sensitive information shared between parties. These are the key points to include in a non-disclosure agreement (NDA):. NDA stands for "nondisclosure agreement, though it's also known as a confidentiality agreement. Either way, it's a clause in a legally binding contract. A mutual non-disclosure agreement (NDA) is a legal contract between at least two parties that outlines confidential material, knowledge, or information.