Corporate Law
Understanding Non-Disclosure Agreements: A Practical Guide
By Daniel Reyes · August 24, 2026
Non-disclosure agreements (NDAs) are ubiquitous in business dealings, from early investor conversations to vendor relationships. Yet many people sign them without fully understanding their scope.
What an NDA Actually Protects
An NDA defines what counts as "confidential information" and restricts how the receiving party can use or disclose it. The definition of confidential information is often broader — or narrower — than people expect.
Mutual vs. One-Way NDAs
A one-way NDA protects only the party disclosing information. A mutual NDA protects both parties — important when both sides will be sharing sensitive information during due diligence.
Duration Matters
Confidentiality obligations should have a defined end date. Perpetual NDAs can create long-tail liability that's easy to forget about.
If you're negotiating an NDA and want a second opinion, our corporate team is available for a consultation.