if any of the bound parties break an nda, the party that released or used the information for their personal benefit may be liable for monetary damages. the main difference is that a non-disclosure agreement (nda) prohibits an individual from releasing information to a competitor while a non-compete agreement does not allow the individual to be employed by a competitor. if there is a breach of confidentiality the party that disclosed the information may be liable for monetary damages depending on the severity. misappropriation – an individual or entity that uses confidential information for their own use or shares with a 3rd party. an nda is a form that can either be written by yourself or with the help of an attorney.

a non-disclosure agreement (nda) is a legally enforceable contract that establishes confidentiality between two parties—the owner of protected information and the recipient of that information. ndas are an almost surefire way to confirm that confidential information stays protected in a variety of situations. a non-disclosure agreement lets the recipients of your proprietary information know that you expect confidentiality and it authorizes you to take legal action if the contract is violated. in the case of new product or concept development, a confidentiality agreement can help the inventor keep patent rights. in many cases, the agreement serves as a document that classifies exclusive and confidential information.