A signed NDA is invaluable when dealing with confidential information and trade secrets. It establishes a confidential relationship between the parties and provides mutual trust. Without a non-disclosure agreement, your business partners or employees may disclose your sensitive information or use it otherwise. A quality NDA clearly defines what is considered confidential and what information is allowed to be disclosed. It helps to avoid any ambiguity in the future.
As a legal document, the non-disclosure agreement authorizes you, as the discloser, to file a lawsuit against the recipients should they violate the confidentiality obligation. Overall, NDAs maintain the secrecy of the information shared between two or more parties and reduces the chances of important data going out of the company or organization.