An NDA typically prohibits employees from disclosing certain confidential information they learn or have access to during the course of their employment. California courts have long ruled that companies can use NDAs to protect certain financial, technical, and businessrelated information.Disclosure agreement (NDA) is a legal contract that outlines confidential materials, information and knowledge between two or more parties. By signing an NDA, the parties agree that they will not share sensitive or proprietary information with competitors, the media, or the public. Consumers may be asked to sign nondisclosure or confidentiality agreements in exchange for refunds. NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information.