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- Hi, Im Ranie with Finance Strategist. In this lesson, were going to cover The non-disclosure agreement, is a common contract used by employers to prevent outside parties from disclosing confidential information to the outside world. Companies working with members outside the organization often must reveal sensitive information in order for the outside party to help the company, such as a consultant needing a companies profit margin in order to provide guidance. The purpose of an NDA is to protect the valuable intellectual property of a a company, including patents, trade secrets, customer lists, production methods and marketing know how. An NDA has four major component. The definition of confidential information and how a person will know what information is confidential. Usually information already known by a person or told to them by an outside party is not confidential. The length of time the person cannot disclose confidential information, often extending into perpetuity.
