What do you mean by the term Non-Disclosure Agreement (NDA) ? Explain its functions and content.

Non-Disclosure Agreements (NDAs) are common in business, as it provides a safeguard to protect trade secrets and other confidential information which are meant to be kept under wraps. Information commonly protected by NDAs might include research & development activities, innovations for a new product, client information, sales and marketing plans, or a unique manufacturing process. The non-disclosure agreement ensures that the business secrets will stay underground, and in case of any failure, the company is eligible to have legal recourse and to sue for damages. The agreement explicitly spells out that the person receiving the information need to keep the same as secret and have limited use for the purpose it has been provided by the company. This means it will be considered as breach of agreement, when it encourages others to breach it, or allow others to access the confidential information through improper or unconventional methods. A non-disclosure agreement is defined as a legally enforceable contract that creates a confidential relationship between a person who holds some kind of trade secret and a person to whom the secret will be disclosed. The Confidentiality agreements typically serve three key functions: To protect sensitive information. By signing an NDA, participants promise to not divulge or release information shared with them by the other people involved. If the information is leaked, the injured person can claim breach of contract. In the case of new product or concept development, a confidentiality agreement can help the inventor keep patent rights. In many cases, public disclosure of a new invention can void patent rights. A properly drafted NDA can help the original creator hold onto the rights to a product or idea. Confidentiality agreements and NDAs expressly outline what information is private and what's fair game. In many cases, the agreement serves as a document that classifies exclusive and confidential information. Content of the Non-Disclosure Agreements: Definitions and exclusions of confidential information; Definitions of confidential information spell out the categories or types of information covered by the agreement. This specific element serves to establish the rules-or subject/consideration-of the contract without actually releasing the precise information. Obligations from all involved people or parties; and time periods. At the same time, nondisclosure agreements often exclude some information from protection. Exclusions might comprise information already considered common knowledge or data collected before the agreement was signed.