A non-disclosure agreement, also known as a confidentiality agreement, is simply a legal contract between two or more parties.
This contract outlines confidential information, knowledge, or material that the parties agree to share with one another, while restricting such information from other parties.
This document is important because it legally binds both paties to terms that deter either party from theft of intellectual property.
Severity. NDAs are civil contracts which are not considered a crime, when broken. However, the breaking of a NDA, the threat of being sued for financial damages is apparent.