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Feature NDA NCA Confidentiality Agreement
Full Name Non-Disclosure Agreement Non-Compete Agreement Confidentiality Agreement
Primary Purpose Protects confidential information from disclosure Prevents someone from competing with you Same as NDA, alternate term
When to Use Before sharing trade secrets, IP, business plans When hiring employees or selling a business Interchangeable with NDA
Duration 2-5 years typical 1-2 years post-employment 2-5 years typical
Enforceability Highly enforceable Varies by state, often limited Highly enforceable
Best For Contractors, partnerships, investors Key employees, executives Same as NDA
Cost $200-500 (lawyer) or free (template) $500-1,500 (usually needs lawyer) $200-500 (lawyer) or free (template)

Use an NDA When:

  • ✓ Sharing business plans with advisors
  • ✓ Discussing tech details with contractors
  • ✓ In early-stage investor conversations
  • ✓ Onboarding vendors with access to data

Use an NCA When:

  • ✓ Hiring sales executives
  • ✓ Selling your business
  • ✓ Key employees leaving
  • ✓ Protecting client relationships

NDA = Confidentiality Agreement

These terms are interchangeable. "Confidentiality Agreement" is simply a more formal-sounding alternative to "NDA."

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