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Definition: NDA

(Non Disclosure Agreement) An agreement signed between two parties that have to disclose confidential information to each other in order to do business. In general, the NDA states why the information is being divulged and stipulates that it cannot be used for any other purpose. NDAs are signed for myriad reasons including when source code is handed to another party for modification or when a new product under development is being reviewed by the press, a prospective customer or other party.