What is NDA (Non-Disclosure Agreement)?
NDA (Non-Disclosure Agreement) is a core concept in modern B2B revenue. Here is a clear, accurate definition, why it matters, and how Ardovo handles it.
Short answer
An NDA, or non-disclosure agreement, is a contract in which parties agree to keep shared information confidential. In sales, an NDA is often signed early so a prospect can share sensitive details and evaluate the product without either side fearing disclosure. NDAs can be one-way or mutual and are routine in enterprise deals.
Key takeaways
- Binds parties to keep shared information confidential.
- Can be one-way (unilateral) or mutual (bilateral).
- Enables candid discovery and technical evaluation.
- A common early legal step in enterprise deals.
Why it matters
Serious evaluations require candor, and candor requires protection. An NDA removes the fear that shared information will leak to competitors, unlocking deeper discovery and technical review, though it can add delay while it sits for signature.
How Ardovo handles it
Ardovo can track the NDA as an early deal milestone, so reps know whether they can share sensitive material and where the paperwork stands. Rook flags deals waiting on an NDA and keeps the paper process moving.
Frequently asked questions
What is the difference between a one-way and mutual NDA?
A one-way NDA protects one party's confidential information. A mutual NDA protects both, which is common when each will share sensitive information during an evaluation.
Does an NDA commit anyone to a deal?
No. An NDA only governs confidentiality of shared information. It does not obligate either party to buy, sell, or proceed with the deal.