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Non Disclosure Agreement

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NON-DISCLOSURE AGREEMENT

This Non-Disclosure Agreement is effective as of by and between (the “Company”) and (the “Other Party”).

For purposes of this Agreement the following designation will apply (initial only one; if the designation is unclear, designation A will apply):

A. / “Disclosing Party” means the Company; “Receiving Party” means the Other Party.

B. / “Disclosing Party” means the Other Party; “Receiving Party” means the Company.

C. / “Disclosing Party” means both the Company and the Other Party; “Receiving Party” means both the Company and the Other Party.

The Disclosing Party is prepared to make available to the Receiving Party certain information, including without limitation non-public, confidential, or proprietary information, in connection with Receiving Party's evaluation and/or implementation of a business consultation, or other relationship with the Disclosing Party (the “Purpose”). In consideration of the mutual promises and covenants contained in this Agreement, the disclosure of Subject Information (as defined in Paragraph 2 below) to the Receiving Party, any payments made or potentially to be made by the parties, and for other good and valuable consideration and intending to be legally bound hereby, the parties hereto agree as follows:

1. Purpose. The parties desire that the Disclosing Party will make certain Subject Information available to the Receiving Party for use in connection with a potential or actual business relationship elsewhere defined, and that the Receiving Party will protect such Subject Information.

2. Subject Information. For purposes of this Agreement, “Subject Information” means any information disclosed by the Disclosing Party to the Receiving Party, directly or indirectly, in computer files or writing, orally or by drawings, observations or otherwise, that is clearly marked “proprietary,” “confidential” or the like, or that is not so marked but is described as proprietary or confidential by the Disclosing Party at the time of disclosure and is verified as such within 30 calendar days in a writing transmitted to the Receiving Party.

3. Subject Materials. “Subject Materials” means all tangible materials containing Subject Information, including without limitation written or printed documents, computer disks or tapes, and video or audio recordings, whether machine or user readable.

4. Ownership. Unless otherwise agreed in writing, all Subject Information of the Disclosing Party, and all materials (including all documents, drawings, models, apparatus, designs, lists, disks, diskettes, computer memory or storage or other media) furnished to the Receiving Party by the Disclosing Party, will remain the property of the Disclosing Party. Disclosing Party will not furnish to Receiving Party any Subject Information that the Disclosing Party does not have the right to furnish. By disclosing information to Recipient, Disclosing Party does not grant any express or implied right under its patents, copyrights, trademarks, or trade secret information.

5. Use and Handling of Subject Information.

(a) The Receiving Party agrees not to disclose, distribute, disseminate, or otherwise communicate to any third party any Subject Information, and agrees to use any Subject Information only for the Purpose. All Subject Information will be treated by the Receiving Party with at least the same degree of care as the Receiving Party uses to protect its own confidential information (and in any event at least a reasonable degree of care). The Receiving Party will disclose such Subject Information only to its employees, consultants, representatives, agents or other affiliated entities (collectively, the “Representatives”) who are actively and directly involved in the Purpose, have a need to know, and who have either agreed in writing to be bound by the terms of this Agreement, or have received such Subject Information pursuant to the terms of non-disclosure agreements signed by such Representatives that are at least as comprehensive and restrictive as the provisions contained in this Agreement or are otherwise satisfactory to the Disclosing Party.

(b) The Receiving Party will at all times be responsible for the actions of any Representative that are inconsistent with the terms of this Agreement, including former Representatives who no longer have any employment, consulting or other relationship with the Receiving Party or any affiliated entity. The Receiving Party agrees, at its sole expense, to take all reasonable measures, including court proceedings, to restrain the Representatives (including former Representatives) from unauthorized use or disclosure of Subject Information.

(c) The Receiving Party will not rent, sublicense, lease, transfer or assign any rights in the Subject Information in any form to any other person, and will not modify, translate, reverse engineer, decompile, disassemble, create derivative work space upon or copy any software or accompanying documentation that is part of the Subject Information. The Receiving Party will not make any copies of Subject Information received from the Disclosing Party except as necessary for the Purpose, and any copies that are made will be identified and included as Subject Information the same as the original.

(d) Nothing in this Agreement shall be deemed to, restrict or limit Disclosing Party from any use or disclosure of the Subject Information (or information contained therein or derived therefrom).

6. Limitation on Obligations. The obligation of the Receiving Party to maintain the confidentiality of any Subject Information will not apply to any specific portion of the Subject Information to the extent that the Receiving Party can document, to the reasonable satisfaction of the Disclosing Party, that such specific portion was (a) in the public domain through no action of the Receiving Party or its Representatives, (b) rightfully received from a third party that has the right to furnish it to the Receiving Party without any restriction on use or disclosure, (c) rightfully known to the Receiving Party without any restriction on use or disclosure prior to its receipt from the Disclosing Party, (d) generally made available to third parties by the Disclosing Party without any restriction on use or disclosure, or (e) furnished by the Disclosing Party after receiving written notification from the Receiving Party that the Receiving Party does not desire to receive any further Subject Information.

7. Requests for Disclosure. In the event that the Receiving Party or any of its Representatives receives a request or is required (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to disclose any part of the Subject Information, the Receiving Party agrees (a) to notify immediately the Disclosing Party of the existence and circumstances surrounding such request or requirement, (b) to consult with the Disclosing Party on the advisability of taking legally available steps to resist or narrow such request or requirement, and (c) to assist the Disclosing Party at the Disclosing Party’s expense in seeking a protective order or other appropriate remedy. In the event that such protective order or other remedy is not obtained or the Disclosing Party waives compliance with such requirements in writing, the Receiving Party may disclose to any tribunal only that portion of the Subject Information that the Receiving Party has been advised by written opinion of counsel is legally required to be disclosed, and the Receiving Party will not be liable for such disclosure unless such disclosure was caused by or resulted from a previous disclosure by the Receiving Party or its Representatives not permitted by this Agreement.

8. Term and Termination: This Agreement shall be effective as of the Effective Date first written above, and may be terminated immediately with respect to further disclosures upon notice in writing by either party. The Disclosing Party may terminate the use of its Subject Information by the Receiving Party at any time upon written notice without any liability under this Agreement for such termination. Unless sooner terminated, this Agreement shall automatically terminate one year after the Disclosing Party has last disclosed Subject Information to the Receiving Party.

9. Return of Materials. Upon the request of the Disclosing Party, or at such time as the Receiving Party no longer needs the Subject Information for the Purpose (whichever occurs first), the Receiving Party and its Representatives (a) will promptly cease using all Subject Information of the Disclosing Party, (b) will promptly deliver to the Disclosing Party (or, at election of the Disclosing Party, destroy) all Subject Information received from the Disclosing Party, (c) will destroy any other materials (including memoranda, notes and other writings or data, whether tangible or stored in any computer memory or storage medium) containing or reflecting any of the Subject Information (regardless of who prepared such material), and (d) will not retain any copies, extracts or other reproductions (whether tangible or stored in any computer memory or storage medium) of such materials. Compliance with this paragraph will be certified in writing to the Disclosing Party by an authorized officer of the Receiving Party supervising the return and/or destruction of such materials.

10. No Joint Venture, License, Etc. This Agreement is not intended to and will not be construed as creating a joint venture, partnership or other form of business association between the parties, and, except for the use of Subject Information for the limited Purpose set forth in this Agreement, no rights or licenses to any patents, trademarks, copyrights, mask works, trade secrets or other intellectual property rights of the Receiving Party are granted or implied under this Agreement.

11. Warranties. Each Party represents and warrants that it possesses all necessary powers, rights, and authority to lawfully make the disclosures, representations, and warranties provided for in this Agreement.

12. Miscellaneous.

(a) Injunctive Relief: The Receiving Party acknowledges and agrees that any Subject Information that it receives is proprietary to, and a valuable trade secret of, the Disclosing Party, and that any unauthorized use or disclosure in breach of this Agreement will result in irreparable and continuing harm and loss to the Disclosing Party. The Receiving Party acknowledges that such breach of this Agreement cannot be adequately compensated for by money damages, and agrees that specific performance is an appropriate remedy for any breach or threatened breach. Accordingly, the Receiving Party consents to the issuance of any injunctive relief or the enforcement of other equitable remedies against it (without bond or other security) to compel performance of any of the terms of this Agreement.

(b) Entire Agreement: This Agreement states the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements, written or oral, with respect to such subject matter. This Agreement will be governed by the laws of the State of , notwithstanding any conflicts of laws principles, and the parties consent to the jurisdiction of all federal and state courts in .

(c) Successors and Assigns: The Receiving Party may not assign any of its rights or obligations under this Agreement without the prior written consent of the Disclosing Party. This Agreement will be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns.

(d) Headings, Pronouns & Construction. The headings in this Agreement are inserted for convenience only and are in no way intended to describe, interpret, define, or limit the scope, extent or intent of this Agreement or any provision hereof. All pronouns and only variations thereof shall be deemed to refer to masculine, feminine, or neuter, singular or plural as the identity of the Person or Persons may require. Whenever the singular number is used in this Agreement and when required by the context, the same shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa.

(e) Amendments and Waivers: This Agreement may not be amended except in writing signed by both parties. Any waiver under this Agreement must be in writing, and no failure or delay in exercising any right, power or privilege will operate as such a waiver.

(f) Litigation: In the event of litigation between the parties alleging any breach of this Agreement, the prevailing party in such litigation shall be entitled to recover its reasonable attorneys’ fees and other reasonable litigation expenses. The “prevailing party” within the meaning of this paragraph includes without limitation a party who agrees to dismiss an action or proceeding upon the other’s payment of the sums allegedly due or upon the other’s performance of the obligation allegedly breached or who obtains substantially the relief it seeks. The parties agree that any such litigation will be brought in a court of competent jurisdiction located in the State of .

(g) Remedies Are Cumulative. All remedies, whether under this Agreement, provided by law or otherwise, will be cumulative and not alternative.

Company

By:

Its:

Other Party:

By:

Its:

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What a Non Disclosure Agreement (NDA) Is and When It Applies

A Non Disclosure Agreement (NDA) is a written contract where parties agree to protect specified confidential information from unauthorized use or disclosure. NDAs define what information is confidential, set the duration of confidentiality, identify permitted disclosures and exceptions, and describe remedies for breach. In the United States NDAs are enforceable as contracts under state law and governed in electronic contexts by federal ESIGN (15 U.S.C. ch. 96) and state-level UETA or ESRA where applicable. NDAs are commonly used in business negotiations, hiring, vendor relationships, and M&A due diligence to safeguard trade secrets and sensitive materials.

Why Use a Non Disclosure Agreement

An NDA reduces the risk of confidential information leaking, clarifies what can be disclosed, preserves trade-secret status, and creates contractual remedies for misuse while supporting compliance with industry rules such as HIPAA when health data is involved.

Why Use a Non Disclosure Agreement

Who Commonly Uses NDAs

NDAs are used by individuals and organizations that exchange sensitive information and need a contractual shield to manage risk and duties.

  • Startups and small businesses exchanging product roadmaps and investor pitch materials during fundraising and partnerships.
  • Legal and in-house counsel drafting side letters, vendor agreements, or carve-outs to protect privileged information during negotiations.
  • Service providers, consultants, and vendors who receive client data, prototypes, or proprietary processes under contractual confidentiality.

Use the NDA scope and parties sections to limit obligations to the specific information and recipients intended to be protected.

Essential Fields and Data Elements for an NDA

Parties' Names: Full legal names of each signatory entity or individual.
Effective Date: Date when confidentiality obligations begin.
Confidential Information: Precise definition of covered materials and formats.
Term and Duration: Length of confidentiality obligations and survival clauses.
Permitted Disclosures: Allowed exceptions such as legal compulsion or prior public knowledge.
Signatures: Executed signature blocks for all obligated parties.

Step-by-Step: Complete and Execute an NDA

Follow this sequence to draft, review, and finalize an enforceable NDA with a preserved audit trail.

  • 01
    Draft Document: Identify parties, scope, term, and remedies.
  • 02
    Specify Fields: Place signature, date, and initial fields.
  • 03
    Choose Authentication: Set signer verification: email, SMS, or stronger.
  • 04
    Execute and Archive: Collect signatures and save the signed record with audit details.

Core Clauses Every Professional NDA Should Include

A well-drafted NDA balances clarity with enforceability; include precise scope, obligations, exceptions, term, remedies, and handling of materials.

Confidentiality Scope

Describe specific categories, examples, and excluded information so covered data is unambiguous and enforceable in court or arbitration.

Permitted Use

State the limited purpose for which the receiving party may use confidential information and prohibit other uses.

Exclusions

List standard exclusions such as public knowledge, independently developed information, and information lawfully obtained from third parties.

Term and Survival

Set a clear term for obligations and specify which duties (e.g., non-disclosure) continue after termination.

Remedies and Limitations

Include injunctive relief language, damages, and any caps or indemnities aligned with negotiation positions.

Return or Destruction

Require return or certified destruction of confidential materials on termination or request with compliance timelines.

Common Drafting and Execution Mistakes to Avoid

  • Vague confidentiality definitions that fail to identify formats, categories, or scope, leaving enforceability uncertain and litigation-prone.
  • Missing or unsigned signature blocks for one or more parties, which can render the agreement unenforceable against an absent signer.
  • Failing to state the term or survival of obligations clearly, causing disputes over how long confidentiality must be maintained.
  • Skipping authentication or audit-trail capture during eSigning, making it harder to prove intent, attribution, and consent under ESIGN or UETA.

Consequences of an Incorrect or Incomplete NDA

Monetary Damages: Compensatory and possibly punitive damages.
Injunction Risk: Court orders to stop disclosure or use.
Loss of Trade Secrets: Irreparable commercial harm and competitive loss.
Indemnity Liability: Contractual duty to reimburse third-party claims.
Enforceability Issues: Agreements may be voidable for vagueness.
Compliance Exposure: HIPAA or other regulatory penalties if protected data mishandled.

How to Configure an Online NDA Workflow

Set workflow options before sending to ensure signer order, authentication, and records retention meet legal and business needs.

Authentication Method Email link, SMS code, or knowledge-based verification depending on risk level.
Field Types Signature, initials, date, checkboxes, and conditional fields for annexes.
Signing Order Sequential or parallel signer routing to control execution flow.
Reminder Schedule Automated reminders and expiration dates for unsigned requests.
Audit Trail Capture timestamps, IP addresses, and action logs for evidentiary support.

Typical Delivery and Execution Flow for an NDA

A concise view of sender, signer, and storage steps for digital NDAs.

  • Prepare Document: Draft, attach exhibits, and assign fields.
  • Send for Signature: Email or share a secure signing link.
  • Authenticate Signers: Verify identity and capture consent.
  • Store Record: Save signed PDF and audit trail securely.

Technical Considerations for eSigning NDAs

Confirm platform compliance (ESIGN/UETA, HIPAA if applicable, SOC 2/ISO) and set retention policies in the system.

  • File Formats: PDF, DOCX supported for uploads and signed outputs.
  • Integrations: Connectors to Salesforce, NetSuite, Google Workspace, and Box.
  • Security Controls: Two-factor auth, TLS in transit, AES-256 at rest.

Key Timelines and Typical Deadlines in NDA Use

Track effective dates, term lengths, notice periods, and any time-limited disclosure allowances to avoid unintended lapses or overreach.

Effective Date:

Date when obligations start; often execution date or a specified earlier date.

Term Length:

Commonly 1–5 years or as agreed; trade secrets often subject to longer protection.

Review Period:

Specify how long a recipient has to review and accept terms.

Breach Notice:

Timeframe to notify the disclosing party of compelled disclosures.

Survival Clauses:

Identify clauses that continue after termination, e.g., confidentiality and non-use.

Example eSignature Vendor Comparison for NDA Execution

Compare basic pricing and key capabilities when choosing an eSignature provider for NDAs; signNow is shown first per vendor comparison conventions.

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 Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Premium tier) Varies by plan Varies by plan Varies by plan Varies by plan
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

Frequently Asked Questions About Non Disclosure Agreements

Answers to common NDA questions about enforceability, eSigning, revocation, and amendment to help reduce execution errors and legal exposure.


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