An NDA or Non-Disclosure Agreement is an agreement that protects confidential information from being shared.
Even before you’ve signed a contract, an NDA allows a client to share a little more about a project, for example, what the project is, who they are, and what they do, any commercial insights, or perhaps even talking about a secret new product.
Most NDAs are mutual - meaning both parties agree to keep anything which is shared with them, confidential.
Signing an NDA is generally absolutely fine - all it’s saying is that you won’t share the information with anyone else.
But it’s important to understand what you’re agreeing to - as some NDAs can put significant liabilities on you, should the client claim that you’ve shared confidential information. Some NDAs state that you’re responsible for any loss the client suffers as a result of confidential information being shared - sometimes they don’t even need to prove you shared it!
As with any legal document, it’s really important to understand what you’re signing before you sign it. Speak to a lawyer or legal profession if you’re unsure, use tools like ChatGPT to ask if there are any concerning clauses, and speak to your community for advice.
