Establishing secure connection…Loading editor…Preparing document…

Nondisclosure Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

NONDISCLOSURE AGREEMENT

THIS AGREEMENT is made by and between a corporation ("Corporation"), and ("the Company"), effective as of the date set forth below.

WITNESSETH: The parties, intending to be hereby legally bound, agree as follows:

1. General. The Company has requested or may be receiving from Corporation information of a non-public nature for use by the Company and each of its officers, directors, agents, employees and representatives, including financial and legal advisors (collectively, "Representatives") in connection with consideration by the Company of the joint venture with Corporation at the location described in Exhibit "A" (the "Joint Venture").

2. Confidential Information Defined. The parties acknowledge that, in the course of the Company's consideration of the Joint Venture, the Company may receive certain confidential information from or about Corporation or its affiliates, including but not limited to technical, financial and business information and models, names of potential customers, proposed business transactions with third parties, reports, plans, market projects, software programs, data and other confidential and proprietary information relating to Corporation's or its business whether provided orally or in writing. All such technical, financial or other business information thus supplied by Corporation to the Company or its Representatives is hereinafter called the "Information". The term "Information" as used herein also includes (i) the fact that the Information has been made available to or is being inspected or evaluated by the receiving party, (ii) the fact that such discussions or negotiations are taking place concerning the Joint Venture and (iii) any of the terms, conditions or other facts with respect to the Joint Venture.

3. Exclusions from Definition. The term "Information" as used herein does not include any data or information which is already known to the Company at the time it is disclosed to the Company, or which before being divulged to the Company (a) has become generally known to the public through no wrongful act of the Company; (b) has been rightfully received by the Company from a third party without restriction on disclosure; or (c) has been disclosed pursuant to a requirement of a governmental agency or of law without similar restrictions or other protection against public disclosure, or is required to be disclosed by operation by law.

4. Nondisclosure Obligation. The Company as well as its Representatives receiving any Information shall keep such Information confidential and shall not disclose such Information, in whole or in part, to any person other than its Representatives who need to know such Information in connection with the Company's evaluation thereof in connection with the Joint Venture (it being agreed and understood that such Representatives shall be informed by the Company of the confidential nature of the Information and shall be required by the Company to agree to treat the Information confidentially).

5. Standard of Protection. For the purpose of complying with the obligations set forth herein, the Company shall use efforts commensurate with those that such party employs for protection of corresponding sensitive information of its own. However, in the event that the Company receiving any Information is legally required to disclose any Information, the Company shall promptly notify Corporation of such request or requirement prior to disclosure so that Corporation may seek an appropriate protective order and/or waive compliance with terms of this Agreement.

6. Nonuse Obligation. In addition to its obligation of nondisclosure hereunder, the Company agrees that it will not, directly or indirectly, attempt to appropriate or otherwise take for its or other parties' benefit the business opportunity of Corporation as it relates to the business of Corporation.

7. Ownership. Return of Information. All Information (including tangible copies and computerized or electronic versions thereof) shall remain the property of Corporation. Within ten (10) days following the receipt of a written request from Corporation, the Company will either deliver to Corporation or destroy all tangible materials contain or embodying the Information received from Corporation and the Company shall deliver to Corporation a certificate certifying that all such materials in the Company's possession have been delivered to Corporation or destroyed.

8. No Representations or Further Obligations. Neither this Agreement nor the disclosure or receipt of Information shall constitute or imply any promise or intention to undertake the Joint Venture. It is understood that this Agreement does not obligate either party to enter into any further agreements or to proceed with any possible relationship or other transaction.

9. Applicability to Representatives and Affiliates. The obligations of the Company hereunder of nondisclosure and nonuse shall extend to its affiliates and Representatives.

10. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of

IN WITNESS WHEREOF, the parties have executed and delivered this Nondisclosure Agreement effective as of the date of execution by the last party to execute this Agreement as set forth below.

Date:

Signed:

By:

Title:

Date:

Signed:

By:

Title:

Enter text

What a Nondisclosure Agreement Does and when it applies

A Nondisclosure Agreement (NDA) is a contract that obligates one or more parties to keep specified information confidential and limits its use. NDAs can be unilateral (one-way) or mutual (two-way) and typically define the scope of protected information, permitted disclosures, duration of obligations, and remedies for breach. NDAs are commonly used during hiring, vendor onboarding, fundraising, M&A diligence, and vendor integrations. Electronic execution is generally valid under U.S. law when the transaction meets e-signature legal tests such as ESIGN and UETA.

Why use an NDA to protect sensitive information

An NDA creates contractual duties to preserve confidentiality, clarifies permitted uses, and establishes remedies such as injunctive relief or damages. It reduces ambiguity during collaboration, documents expectations for handling trade secrets or proprietary data, and can support legal claims if confidentiality is breached.

Why use an NDA to protect sensitive information

Who typically signs NDAs and why

Common parties who complete NDAs and the typical reasons they use them.

  • Startups and investors sharing product roadmaps and financial projections during due diligence to protect intellectual property and valuation-sensitive data.
  • Employers and prospective employees protecting trade secrets, client lists, and proprietary processes during interviews or onboarding.
  • Vendors, contractors, and service providers handling confidential customer data, technical designs, or pricing information under project agreements.

NDAs suit a wide range of relationships where information must be shared but control retained; tailor scope and duration to the transaction.

Core clauses to include in a professional NDA

A robust NDA uses clear definitions and enforceable obligations to avoid ambiguity. Include purpose-limited use language, precise exclusions, and defined remedies to make the agreement practical and defensible.

Scope

Describe exactly what categories of information are confidential and limit coverage to what is necessary for the transaction rather than all information exchanged.

Definition

Provide an explicit definition of Confidential Information, including formats (oral, written, electronic), and whether marked information is treated differently.

Term

Specify the duration of confidentiality obligations and any separate survival period for trade secrets or IP-sensitive materials.

Obligations

State permitted uses, handling procedures, disclosure restrictions, and required safeguards for storing and transmitting confidential material.

Exclusions

List standard exclusions: publicly known information, independently developed materials, information received from third parties without breach, and compelled disclosure.

Remedies

Include injunctive relief, monetary damages, liquidated damages if appropriate, and procedures for dispute resolution and governing law.

Technical and compliance considerations for NDAs

Encryption: AES-256 at rest
Transport: TLS 1.2/1.3 in transit
Audit Trail: Signed event logs
BAA Availability: HIPAA BAA option
ESIGN/UETA: E-signature compliance
Access Controls: Role-based permissions

Simple steps to complete and execute an NDA

Follow a consistent sequence to reduce errors and ensure each party reviews key clauses before signing.

  • 01
    Prepare Draft: Identify parties, define confidential categories, and set term.
  • 02
    Internal Review: Legal or compliance reviews obligations and exclusions.
  • 03
    Send to Counterparty: Provide the draft with instructions and effective date.
  • 04
    Execute: Collect signatures and deliver fully executed copies to all parties.

Configuring an online NDA signing workflow

Set fields and authentication to match the risk profile and regulatory needs before sending the NDA for signature.

Field Configuration
Signature Type Electronic signature with audit trail
Authentication Email plus optional SMS code
Attachments Include exhibits as locked attachments
Notifications Automatic reminders and completion emails

Typical routing and delivery for an executed NDA

NDA distribution usually follows upload, field placement, authentication, signing, and archival steps.

  • Upload: Add the NDA document to the e-sign platform
  • Prepare: Place signature, name, date, and initial fields
  • Authenticate: Apply chosen signer verification
  • Complete: Collect signatures and store executed copies

Digital signing considerations for NDAs

Choose signing controls that match confidentiality risk and regulatory needs.

  • Authentication: Email, SMS, or stronger KBA
  • Audit Trail: Timestamps, IP, and action logs
  • Storage: Encrypted at rest and access logs

Ensure the platform supports exportable signed PDFs and retention policies that meet legal and internal records requirements.

Key timing elements to record in the NDA

Document and calendar critical dates to avoid disputes and preserve legal remedies.

Effective Date:

Date when confidentiality obligations begin (MM/DD/YYYY).

Term Expiration:

Date or event when obligations end; define survival period.

Return or Destruction:

Deadline for returning or destroying confidential materials after termination.

Notice Period:

Time required to notify parties before permitted disclosures or transfers.

Review Dates:

Optional periodic review dates for data minimization or retention checks.

Common drafting and execution mistakes to avoid

  • Overbroad definitions that sweep in non-confidential or publicly known information create enforcement problems and invite litigation.
  • Failing to specify permitted uses or recipients leads to argument over whether a disclosure was allowed under the agreement.
  • Using different legal entity names or signatory names across copies creates ambiguity about who is bound by the NDA.
  • Neglecting to set a survival period or tying confidentiality to a vague event can leave obligations unclear after termination.

Consequences of an incorrect or unenforceable NDA

Monetary Damages: Compensatory awards
Injunctive Relief: Court-ordered prohibitions
Liquidated Damages: Enforceable if reasonable
Trade Secret Claims: Civil remedies possible
Reputational Harm: Client and partner impact
Contract Voidance: Unclear or illegal terms may void clauses

Real-world examples of NDAs in use

These brief examples show how organizations use NDAs to protect information while completing business transactions.

Martin Properties

A real estate firm needed secure tenant and investor information during closings

  • They used NDAs for remote diligence
  • Tim Martin observed that executing documents online preserved compliance and accelerated deal timelines while keeping sensitive documents confidential.

Fertility Centers

A healthcare provider exchanged proprietary treatment protocols with a vendor

  • The NDA included HIPAA addenda and BAA language
  • John Butler noted the platform’s security and API helped maintain records and meet regulatory obligations while protecting patient-related confidential information.

eSignature vendor comparison for executing NDAs (vendor features and starting prices)

Basic pricing and capability distinctions among common eSignature vendors. signNow appears first; feature availability varies by plan and vendor.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical tips for clear, enforceable NDAs

Small drafting choices improve enforceability and reduce downstream friction. Focus on clarity, scope, and recordkeeping.

Define confidential information narrowly
Avoid catchall language; specify formats, examples, and whether aggregated or derived information is covered to reduce disputes and judicial narrowing.
Select appropriate governing law
Choose the jurisdiction whose substantive contract law you intend to control interpretation and enforcement of remedies and venue.
Use measurable handling requirements
Specify encryption, access control expectations, and return/destruction procedures to demonstrate reasonable safeguards in litigation.
Document consent to e-signatures
Include an explicit consumer disclosure when necessary and ensure the signing method captures intent, attribution, and retention to satisfy ESIGN/UETA standards.

Frequently asked questions about NDAs and electronic execution

Answers to common legal and practical questions about drafting, signing, and enforcing NDAs, with a focus on electronic execution and records.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users