A Texas non-disclosure agreement is a legally binding contract that prevents the sharing of confidential information by those who sign it. NDAs are commonplace in business relationships, where leaked confidential information can adversely affect a company’s financial performance. Examples of situations where an NDA can be used may include employee training, hiring independent contractors, business meetings, or other instances where the sharing of sensitive information is necessary. By putting an NDA into effect, the owner of the information is given the right to pursue legal action to recover damages should the unauthorized disclosure of their trade secrets takes place.