In commercial law, what contract protects confidential business information from unauthorized disclosure?

In commercial law, a contract protecting confidential business information from unauthorized disclosure is called a non-disclosure agreement.

A non-disclosure agreement, commonly abbreviated NDA, defines information that must remain confidential and limits how the recipient may use it. Businesses often use NDAs when discussing a possible acquisition, sharing technical designs, evaluating a partnership, or giving employees access to trade secrets.

An NDA may be unilateral, with one party disclosing information, or mutual, with both parties exchanging confidential material. Typical provisions address the permitted purpose, exclusions for information already public or independently developed, duration of confidentiality, and remedies for breach.

An NDA does not automatically make every piece of information a trade secret. Protection can depend on whether the information has economic value from being secret and whether reasonable steps were taken to keep it secret. Local contract and trade-secret law determines enforceability.