A Non-Disclosure Agreement (NDA) is considered what type of legal document if executed properly?

A Non-Disclosure Agreement (NDA) is considered a legally binding contract when executed properly because it involves specific terms agreed upon by the involved parties, outlining the confidential information that cannot be shared with others. For an NDA to be legally binding, it must meet certain criteria, such as the existence of mutual consent, a lawful purpose, and consideration (something of value exchanged, such as confidentiality in return for access to information).

This means that if one party discloses confidential information in violation of the agreement, the other party has the legal right to pursue remedies, such as damages or an injunction, to enforce the terms of the NDA. In contrast, informal agreements lack the formality and enforceability required for legal recourse, while verbal understandings may not hold up in a legal setting due to the absence of written documentation. Government regulations do not typically encompass the definitions or enforceability of private agreements like NDAs, making these options less accurate compared to the classification of NDAs as legally binding contracts.