A Non-disclosure agreement (NDA) will ensure that the party you will be working with on a project with will keep your confidential information secret. Basically, the parties agree to protect ideas about a project before actually entering into a formal contract for the services. So, say you’re a graphic designer. It wouldn’t be fair (or at least not wise) for a client to hire you, but refuse to tell you anything about what they need for an upcoming project, citing that it’s a secret, right? An NDA will provide a bridge between their want for secrecy and your need for pertinent information.

If you think about it, anytime you’re usually hiring a service provider to help transform your idea into reality (i.e., a product), you don’t want to give away all of your innovative ideas upfront, right? An NDA prevents that other person from sharing that idea or swiping it for themselves. An NDA will ensure that your potential collaborator or hire is legally required not to share your idea, or face a hefty financial penalty if they do.