ITPEC IP April 2024 Question 73
Which of the following is an example of a Non-Disclosure Agreement (NDA)?
Explanation
A contract obliging outsourcer and outsourcee to keep each other's secret information confidential — NDA stands for non-disclosure agreement.
An NDA (confidentiality agreement) is concluded when parties will learn each other's confidential information, as in outsourced system development. It defines what counts as confidential, the permitted use and recipients, the duration of the obligation, the return or destruction of materials, and the consequences of a breach. It can bind one party or both.
Answer (c)
Why not others:
- •(a) — agreeing the content of an IT service between provider and customer before it is provided is an SLA (service level agreement)
- •(b) — the vendor transferring ownership of equipment and the buyer paying for it is a sales contract
- •(d) — completing a task at the outsourcee's own discretion and responsibility and being paid on completion is a contract for work (a service contract for completing the work)
Key rule: NDA protects disclosed secrets, SLA fixes service levels, a sales contract transfers ownership, and a contract for work pays for a completed result.
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