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Non-Disclosure Agreement

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Non-Disclosure Agreement regarding Invention that has not been Patented

Agreement made on the , between

of

, referred to herein as Inventor, and

, a corporation organized and existing under the laws of the state of with its principal office located at

, referred to herein as Corporation.

Whereas, Inventor wishes to disclose and Corporation wishes to receive certain information and material regarding a product (the Product) from Inventor which has been represented by Inventor to be confidential and proprietary information (the Information) pertaining to the Product which Inventor represented that he has developed, and

Whereas, this exchange will include all communication of Information between the parties in any form whatsoever, including oral, written and machine readable form, pertaining to the above, and

Whereas, Corporation wishes to receive and Inventor wishes to disclose the Information for the sole purpose of

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. The disclosure of Information by Inventor is in confidence and thus Corporation agrees to:

A. Not disclose the Information to any other person and use at least the same degree of care to maintain the Information confidential as Corporation uses in maintaining as confidential its own confidential information, but always at least a reasonable degree of care;

B. Use the Information only for the above purpose;

C. Restrict disclosure of the Information solely to those employees of Corporation having a need to know such Information in order to accomplish the purpose stated above;

G. Advise each such employee, before he or she receives access to the Information, of the obligations of Corporation under this Agreement, and require each such employee to maintain those obligations.

E. Within fifteen (15) days following request of Inventor return to the Inventor all documentation, copies, notes, diagrams, computer memory media and other materials containing any portion of the Information, or confirm to Inventor, in writing, the destruction of such materials.

2. This Agreement imposes no obligation on Corporation with respect to any portion of the Information received from Inventor which (i) was known to Corporation prior to disclosure by Inventor, (ii) is lawfully obtained by Corporation from a third party under no obligation of confidentiality, (iii) is or becomes generally known or publicly available other than by unauthorized disclosure, or (iv) is independently developed by Corporation.

3. This Agreement imposes no obligation on Corporation with respect to any portion of the Information unless such portion is (a) described or disclosed in a written document or machine readable media marked Confidential at the time of disclosure or (b) described or disclosed in any other manner and summarized in a memorandum mailed to Corporation within thirty (30) days of the disclosure. Information described or disclosed by Inventor in a written document or machine readable media and marked Confidential includes, but is not limited to, the items, if any, set forth in Schedule A attached hereto. Schedule A is incorporated herein by reference. Corporation hereby acknowledges receipt of the items listed in Schedule A, if any.

4. The Information shall remain the sole property of Inventor.

5. In the event of a breach or threatened breach or intended breach of this Agreement by either party, the other party, in addition to any other rights and remedies available to it at law or in equity, shall be entitled to preliminary and final injunctions, enjoining and restraining such breach or threatened breach or intended breach.

6. The validity, construction, and performance of this Agreement are governed by the laws of the State of .

7. The rights and obligations of the parties under this Agreement may not be sold, assigned or otherwise transferred.

This Agreement is binding upon Corporation and Inventor and upon the directors, officers, employees and agents of each. This Agreement is effective as of the later date of execution and will continue indefinitely unless terminated on thirty (30) days written notice by either party. However, Corporation's obligations of confidentiality and restrictions on use and disclosure of the Information disclosed by Inventor shall survive termination of this Agreement.

WITNESS our signatures as of the day and date first above stated.

By:

Enter text

What a Non-Disclosure Agreement Covers

A Non-Disclosure Agreement (NDA) is a legal contract that defines confidential information the parties will share and limits how that information may be used or disclosed. NDAs can be unilateral or mutual, describe the scope and duration of confidentiality, and specify permitted disclosures. In the United States, NDAs may be signed electronically when the transaction meets the ESIGN Act and applicable state UETA or ESRA rules, subject to any statutory exceptions.

Why an NDA Matters for Protecting Confidential Information

An NDA creates clear obligations and remedies, helps preserve trade secret status, supports contract-based enforcement, and clarifies permitted uses and return or destruction procedures for confidential materials.

Why an NDA Matters for Protecting Confidential Information

Common parties that use NDAs

The document scope and wording should match the party roles and the nature of the information shared—draft conservatively for high-value IP or regulated data.

  • Startups and investors exchanging pitch materials during fundraising and due diligence.
  • Vendors and suppliers sharing product specifications or proprietary processes with customers.
  • Employers and contractors protecting business plans, client lists, and technical know-how.

Who can sign and bind an organization

Company Officer

An executive or officer with delegated authority can bind a corporation. Verify corporate authorization in bylaws or board resolutions before execution to prevent challenges to enforceability.

Independent Contractor

A contractor signs in a personal or business capacity as specified. Confirm the signatory has authority to accept confidentiality terms on behalf of their entity or risk later invalidation.

Core NDA provisions to include

A professional NDA contains clear definitions, limits on use, exclusions, term and survival clauses, return obligations, and remedies for breach.

Definition

Define 'Confidential Information' precisely, including formats and examples, and exclude broad catch-alls to avoid ambiguity and litigation over scope.

Exclusions

List typical exclusions such as public domain materials, independently developed information, and disclosures required by law, with procedures for compelled disclosure.

Use Restrictions

Specify permitted purposes (e.g., evaluation, performance) and prohibit reverse engineering, replication, or unauthorized distribution of confidential materials.

Term & Survival

State the confidentiality period and which obligations survive termination—trade secret protection and non-use obligations often survive longer than the contract term.

Return or Destruction

Require return or certified destruction of materials on request or termination and describe the process for retained archival copies, if any.

Remedies

Include injunctive relief, damages, and fee-shifting where appropriate. Clarify governing law and dispute resolution to reduce enforcement uncertainty.

Security and compliance checkpoints

Encryption: TLS 1.2/1.3; AES-256 at rest
Audit Trail: Timestamps and action logs
HIPAA: BAA required for PHI
21 CFR Part 11: Compliant controls available
SOC 2: SOC 2 Type II certification
Access Controls: Role-based signer authentication

How to complete an NDA — quick step sequence

Follow these steps to prepare, execute, and retain a compliant NDA.

  • 01
    Prepare Parties: List full legal names and business entities.
  • 02
    Define Confidential Info: Be specific about categories and formats.
  • 03
    Set Term: Choose effective date and duration.
  • 04
    Execute & Retain: Sign, collect copies, and store securely.

Online workflow settings to configure

Recommended digital workflow options improve security and reduce delays when sending an NDA for signature.

Field Configuration
Signature Order Sequential or parallel signing
Authentication Email plus optional SMS code
Template Save reusable NDA template
Notifications Enable reminders and completion alerts

Where to send copies and who receives them

Establish a clear routing plan so each party and their counsel receive executed copies promptly.

  • Primary Recipient: Signed copy to the counterparty's authorized email.
  • Legal Counsel: Provide counsel with a fully executed PDF and audit trail.
  • Internal Records: Store executed copy in secure document repository.
  • Compliance Team: Notify privacy or security teams when PHI or regulated data is involved.

Technical considerations for eSigning an NDA

Confirm retention and export options meet recordkeeping policies and regulatory requirements before finalizing the signing workflow.

  • Supported Formats: PDF, DOCX are standard for retention
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Authentication: Email, SMS, or stronger methods

Time-sensitive dates to note in an NDA

Track effective dates, survival clauses, and response deadlines so obligations and disclosure windows are clear.

Effective Date:

Enter as MM/DD/YYYY; obligations start on this date.

Confidentiality Term:

Specify duration (e.g., 2–5 years) and survival clauses.

Return Request Deadline:

Set timeframe to return or destroy materials after termination.

Mandatory Disclosure Notice:

Provide procedure and timing if disclosure compelled by law.

Record Retention:

State how long executed copies must be retained.

Key milestones from draft to long-term retention

A clear milestone sequence helps teams meet execution and compliance obligations without gaps.

01

Draft and Negotiate

Finalize definitions, exclusions, and scope before approval.

02

Legal Review

Counsel confirms enforceability and statutory compliance.

03

Execution

All authorized signers execute and exchange fully signed copies.

04

Secure Storage

Store executed agreement and audit trail in records system.

Common drafting and execution mistakes

  • Vague definitions of confidential information that leave core IP unprotected and invite litigation over scope.
  • Failing to confirm signatory authority, producing agreements that a court may rule unenforceable against an organization.
  • Omitting survival or return clauses so obligations expire earlier than the parties intended after termination.
  • Using overly broad perpetual confidentiality without justified business need, which courts may limit as unreasonable.

Risks and consequences of a flawed NDA

Unenforceable Terms: May be ruled invalid
Loss of Trade Secrets: Permanent IP exposure
Injunctive Relief: Court orders for urgent protection
Monetary Damages: Compensatory and possibly punitive
Attorney Fees: Significant litigation costs
Regulatory Risk: Breach of privacy laws

eSignature vendor comparison for NDA workflows

Basic pricing and capability indicators for common eSignature providers. signNow appears first in the comparison per platform data.

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 No No
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-world examples of NDAs in practice

Practical examples show how NDAs are used to accelerate deals and protect sensitive work during remote collaboration.

Optica Ventures

The firm needed quick investor confidentiality before pitching

  • Required one-page mutual NDAs for speed
  • By standardizing the template and routing electronically they shortened diligence cycles and kept investor conversations protected while maintaining a consistent audit trail.

Fertility Centers of Illinois

The clinic collected partner confidentiality for shared patient program details

  • Used HIPAA-aware clauses for PHI handling
  • Clear BAA language and specified return/destruction procedures helped satisfy compliance and provided documented consent paths for sensitive information exchanges.

Practical drafting and execution tips

Use these best practices to make NDAs clearer, enforceable, and easier to manage over time.

Keep definitions narrow
Define confidential categories with specific examples. Avoid open-ended language that could be construed to cover public or unrelated information; narrower definitions improve enforceability and reduce disputes.
Confirm signing authority
Document the signer's capacity and, for organizations, verify board or delegated authority. Attach a certificate of authority if necessary to avoid later challenges.
Use surviving obligations
Specify which clauses survive termination—non-use, non-disclosure, and remedies commonly survive to preserve trade secret protections after the relationship ends.
Preserve audit trails
When eSigning, retain tamper-evident copies and the platform audit trail (timestamps, IPs, authentication) to support admissibility in court.

Frequently asked questions about NDAs

Answers to common questions about enforceability, electronic signatures, notarization, and revocation of NDAs in the U.S.


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