A business example
A founder wants a prospective manufacturer to review a confidential product drawing before quoting.
Define the information
Identify the drawings and specifications being shared.
Limit the use
Agree that the material is used only to evaluate and quote for the proposed work.
Control onward sharing
Specify who may receive it and what happens if discussions end.
What this shows
The NDA addresses use and disclosure. Manufacturing rights, design ownership and the eventual supply contract still need their own terms.
What it is often confused with
An NDA does not automatically transfer intellectual property or prevent all lawful independent development.
What to look at in your business
Define protected information, permitted use, recipients, duration and return or deletion duties.
Context and further reading
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026