What Does “Non-Disclosure” Mean in a Contract?
An obligation not to reveal or share confidential information with unauthorized parties.
Detailed Explanation
Non-disclosure obligations prohibit sharing confidential information. They can appear in standalone NDAs (Non-Disclosure Agreements) or as clauses within larger contracts. Non-disclosure typically includes restrictions on both revealing information and using it for unauthorized purposes.
Non-disclosure obligations usually specify what information is covered, who can access it, how long confidentiality lasts, and what exceptions apply (like court orders or public information).
Example in a Contract
“Receiving Party shall not disclose Confidential Information to any third party without the prior written consent of Disclosing Party, except to employees and contractors who need to know and are bound by confidentiality obligations.”
Why It Matters
Non-disclosure obligations restrict what you can share, even after a business relationship ends. Violating them can result in lawsuits, damages, and damaged professional reputation.
Related Terms
Have a Clause with “Non-Disclosure”?
Paste your contract clause below for instant AI analysis. Get risk assessment, plain English explanation, and suggested improvements.