A contract where one or both parties agree to keep shared information confidential and not disclose it to outsiders for a defined period.
An NDA is a promise, backed by a contract, not to blab. Before sharing anything sensitive — an unreleased product, customer lists, financials, a startup idea — a client may ask you to sign one. It defines what counts as “confidential,” how long the obligation lasts, and what you can’t do with the information.
For sellers, NDAs are routine and usually harmless. Read two things: how broadly “confidential information” is defined (anything scrawled on a napkin, or genuinely private data?) and whether it quietly bans you from doing similar work for anyone else — that’s a non-compete wearing an NDA’s clothes.
For buyers, an NDA protects your information but doesn’t transfer ownership of anything the freelancer creates — that’s a separate work-for-hire or IP clause. Don’t assume one document does both jobs.
Mutual NDAs (both sides protected) are more balanced than one-way ones. Either way, keep the term reasonable — two to five years is normal; “in perpetuity” for ordinary business info is overreach. For high-stakes deals, confirm the wording with an attorney and start from a solid freelance contract.