Ready to use legal template
Drafted by experienced lawyers
Compliant with Malaysian law
Ready to use legal template
Drafted by lawyers
Compliant with Malaysian law
Home › Business contracts › Non-disclosure agreement (NDA)
Learn more about Non-disclosure agreement (NDA)
A Non-Disclosure Agreement (NDA) is a legally binding contract that protects confidential information shared between parties. It ensures that sensitive business data, trade secrets, intellectual property, and proprietary information remain secure and cannot be disclosed to third parties without permission. Having an NDA in place is essential for startups, corporations, and individuals to establish clear confidentiality terms and prevent unauthorized use or disclosure of valuable information. A well-drafted NDA aligns with Malaysia’s legal framework, including the Contracts Act 1950 and the Personal Data Protection Act 2010, providing strong legal protection in case of breaches. Download our professionally drafted NDA, fully editable in Word format, tailored for use in Malaysia.
Table of contents
What is a Non-Disclosure Agreement (NDA)?
A Non-Disclosure Agreement is frequently used in business to maintain the confidentiality of private information supplied to another party or communicated during the course of business. Non-Disclosure Agreements are frequently referred to as “Confidentiality Agreements” or simply “NDAs.” A secrecy agreement is occasionally a confidentiality clause inserted in another contract, such as an employment contract or a service agreement.
What is the role of a Non-Disclosure Agreement?
A Non-Disclosure Agreement serves two functions: secrecy and protection. A confidentiality agreement might safeguard information ranging from product specifications to client rosters. A NDA establishes the legal basis for preventing ideas and information from being stolen or disclosed to rivals or third parties. An NDA serves three fundamental purposes:
➤ Identifying protected information: NDAs categorize information by creating a line between what is secret and what can be revealed. This permits the parties to work freely within the confines of the confidentiality agreement. |
➤ Safeguarding sensitive data: Signing an NDA establishes a legal commitment to keep sensitive material private. Any disclosure of the information is a breach of contract. |
➤ Protecting patent rights: Because public revelation of a pending innovation can often terminate patent rights, an NDA can shield an inventor as they develop their new product or concept. |