A nondisclosure agreement—also known as an NDA, a confidentiality agreement, or a confidential disclosure agreement (CDA)—is a legally enforceable contract between persons or entities who want to share confidential, proprietary information with each other without the other party or parties to the agreement (1) using the information shared for a purpose other than the intended purpose (as defined in the NDA) or (2) sharing the confidential, proprietary information with persons or entities who are not parties to the NDA.
Nondisclosure agreements are generally interpreted and enforced according to the contract law of the state where one or both parties are located, and may governed by the law of the state the parties’ agreed to in a choice of law provision in the NDA.
In Arkansas, nondisclosure agreements (NDAs) are recognized and enforceable contracts that are used to protect confidential and proprietary information. These agreements prevent the receiving party from using the information for unauthorized purposes or disclosing it to third parties not bound by the NDA. The enforceability of an NDA in Arkansas depends on its compliance with general contract principles, such as the presence of an offer, acceptance, consideration, and mutual assent. The agreement must also be for a lawful purpose and the terms must be clear and specific enough to be enforceable. Arkansas courts will interpret NDAs based on the intent of the parties and the plain language of the agreement. If there is a choice of law provision within the NDA, Arkansas courts will typically honor this provision, provided it does not conflict with Arkansas public policy or statutory law. It is advisable for parties to consult with an attorney to ensure that the NDA is properly drafted and enforceable under Arkansas law.