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A non-disclosure agreement is a private contract between parties who agree to hold certain information in confidence (e.g., not disclose to third parties). In patent law, it is advisable to have a third-party sign a written non-disclosure agreement before divulging any confidential information. The non-disclosure agreement is typically restricted in its enforceability to a certain class of documents or knowledge, usually documents clearly labeled or known to be proprietary and confidential. The non-disclosure agreement does not apply to information that is public or generally known. There are generally two kinds of non-disclosure agreements, unilateral non-disclosure agreements, and mutual non-disclosure agreements. Unilateral non disclosure agreements are usually a promise by one party to hold information in confidence, while a mutual non-disclosure agreement places this burden on both parties. Remedies for breach of non-disclosure agreements can be compensatory and restitution damages.
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