A confidentiality or nondisclosure agreement is a legal contract that restricts the disclosure of certain specified confidential information. These types of agreements are often signed in order to maintain the secrecy of business ideas or in connection with settlement agreements. An NDA is also often used to ensure an employee does not disclose business or trade secrets to a competitor or to the public. NDAs may be signed by any legal entity, including persons over 18 and organization representatives on behalf of the organization. The language of an NDA should be precise and the specific requirements may vary depending on your state’s laws. Since there are often important legal rights at stake, it’s essential you fully understand the terms of any contract, including a confidentiality or nondisclosure agreement, before you sign one.