An NDA is a confidentiality agreement by which the parties undertake not to disclose or misuse information obtained during cooperation or negotiation. It is concluded before sharing sensitive materials – price calculations, technical documentation, customer data, or plans being prepared. A usable agreement precisely defines what is considered confidential, how the information is to be handled, to whom it may be disclosed, how long the obligation lasts after the cooperation ends, and what the consequences of a breach are, including a contractual penalty. A definition that is too broad makes the agreement unenforceable; one that is too narrow makes it pointless. When working with AI tools, it is worth adding a rule on whether, and into which systems, confidential materials may be entered.
See also: Trade secrets when using AI, Contractual penalty in business relationships, Data processing agreement.
