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 North Dakota, nondisclosure agreements (NDAs) are recognized and enforceable contracts that are used to protect confidential and proprietary information shared between parties. The enforceability of an NDA in North Dakota is based on general principles of contract law, which require that the agreement be entered into by parties with the capacity to contract, for a lawful purpose, and with mutual consent. NDAs must clearly define the scope of the confidential information, the obligations of the parties, and the duration of the confidentiality. The parties to an NDA can also include a choice of law provision, specifying that the agreement will be governed by the laws of a particular state, which may or may not be North Dakota. If a dispute arises regarding the NDA, North Dakota courts will interpret and enforce the agreement according to the terms set forth by the parties, as long as they are legal and comply with contract law principles. If the NDA includes a choice of law provision for a different state, North Dakota courts will typically honor that provision, unless it contradicts North Dakota's public policy or statutory law.