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Non-Disparagement Contract

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NON-DISPARAGEMENT CONTRACT

This Non-Disparagement Contract (the Agreement) is entered into as of the Effective Date: by and between Party A: (Entity Type: ), with principal place of business at , and Party B: (Entity Type: ), with principal place of business at .

RECITALS

WHEREAS, the parties have agreed to resolve certain disputes and to govern their respective public statements and conduct with respect to each other; and

WHEREAS, as part of consideration for promises exchanged herein, Party A will provide consideration in the form of: (the Consideration); and

WHEREAS, the parties desire to set forth their agreement prohibiting disparaging statements about one another and to define the remedies for breach.

NOW, THEREFORE, in consideration of the mutual covenants and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Disparage" or "Disparagement" means any oral, written or electronic statement, communication or conduct that a reasonable person would interpret as a statement of a false, derogatory, humiliating, or negative nature regarding the other party's character, reputation, business, products, services, financial condition, employees, agents or performance under this Agreement.

1.2 "Confidential Information" means information designated in writing as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure.

2. NON-DISPARAGEMENT

2.1 Each party covenants and agrees that, during the Term set forth in Section 4 and thereafter as provided herein, it shall not, directly or indirectly, make, publish, or communicate to any person or entity any Disparaging remarks concerning the other party, including its officers, directors, employees, agents, products, services, or business practices.

2.2 The restriction contained in Section 2.1 includes, without limitation, statements in interviews, social media posts, emails, public filings, customer communications and speeches. Speech that is truthful and non-malicious and limited to matters of public record or necessary legal disclosures is addressed in Section 3 below.

3. EXCEPTIONS

3.1 Notwithstanding Section 2, a party may make truthful statements that are required by law, regulation, subpoena, court order, or other compulsory process; provided that, to the extent permitted, the responding party gives the other party prompt written notice of such requirement and cooperates in seeking a protective order or confidential treatment.

3.2 Nothing in this Agreement shall be construed to prohibit a party from providing truthful testimony under oath or participating in any government or regulatory investigation; provided that the party does not otherwise communicate Disparaging statements beyond that which is required.

4. TERM

4.1 This Agreement shall commence on the Effective Date and shall continue for a period of from that date, unless earlier terminated by written mutual agreement of the parties. If "perpetual" is indicated, the obligations herein shall survive indefinitely.

5. REMEDIES

5.1 The parties acknowledge that a breach of the covenants in Section 2 would cause irreparable harm for which monetary damages alone would be an inadequate remedy. Accordingly, in addition to any other remedies available at law or in equity, the non-breaching party shall be entitled to seek injunctive relief to prevent or curtail any actual or threatened breach.

5.2 The parties agree that, if a court determines in a final non-appealable judgment that a party materially breached Section 2, the breaching party shall pay liquidated damages in the amount of and the prevailing party's reasonable attorneys' fees and costs incurred in enforcing this Agreement.

6. NO ADMISSION OF LIABILITY

6.1 This Agreement and the performance of the parties hereunder are not and shall not be construed as an admission of liability, wrongdoing, or fault by any party for any purpose.

7. NOTICES

Party A - Notice Address:

Party A - Contact:

Party B - Notice Address:

Party B - Contact:

8. ATTORNEYS' FEES

8.1 In the event of any dispute arising out of or relating to this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees, costs and expenses incurred in enforcing this Agreement, in addition to any other relief to which it may be entitled.

9. GOVERNING LAW; JURISDICTION

9.1 This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to its conflict of laws principles. Each party consents to the exclusive jurisdiction and venue of the state and federal courts located in that State for resolution of disputes arising under this Agreement.

10. ENTIRE AGREEMENT; AMENDMENT; WAIVER

10.1 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. No amendment or modification of this Agreement shall be effective unless in writing and signed by both parties.

10.2 No failure or delay by either party in exercising any right under this Agreement shall operate as a waiver of such right, nor shall any single or partial exercise of any right preclude any other or further exercise of that right.

11. SEVERABILITY; INTERPRETATION

11.1 If any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. The parties agree to replace any invalid provision with a valid provision that most closely approximates the parties' original intent.

12. COUNTERPARTS; EXECUTION

12.1 This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures delivered by electronic means shall be binding.

ADDITIONAL PROVISIONS

13.1 The parties acknowledge that the remedies provided in this Agreement are cumulative and in addition to any other rights and remedies available at law or in equity. The parties further acknowledge that the Consideration represents fair and adequate consideration for the obligations set forth herein.

Optional Clarification or Additional Exceptions (describe if any):

Party A:

By:

Date:

Party B:

By:

Date:

Enter text✕

What a Non-Disparagement Contract Is and When It Applies

A Non-Disparagement Contract is a written agreement in which one or more parties agree not to make negative statements about the other party, its employees, products, services, or business practices. These clauses commonly appear in separation agreements, settlement packages, vendor contracts, and business sales, and they can be mutual or one-way. The clause typically defines disparaging conduct, lists permitted exceptions, sets a duration, and specifies remedies for breach. Enforceability depends on contract law, public policy limits, and applicable state statutes.

Why Include a Non-Disparagement Clause

Non-disparagement language preserves reputation, reduces litigation risk over public statements, and clarifies post-termination conduct. It creates contractual remedies for damaging commentary while setting expectations among parties.

Why Include a Non-Disparagement Clause

Typical Parties Who Use This Agreement

Organizations and individuals use non-disparagement clauses to protect brand, operations, and confidential settlement terms.

  • Employers and HR teams safeguarding corporate reputation after employee exits.
  • Businesses and vendors protecting trade relationships after contract termination.
  • Parties to settlement agreements preserving confidentiality and public narrative.

Clauses are tailored by role and context—employment separations differ from commercial vendor agreements in scope and permissible statements.

Who Signs and Why

Employer

HR directors, general counsel, or authorized officers typically include non-disparagement clauses in separation or settlement agreements to limit reputational harm and ensure consistent public messaging while preserving legal remedies for breaches.

Former Employee

Departing employees or contractors sign to receive severance, settlement consideration, or release of claims; the clause balances post-employment speech restrictions with the compensation or benefits provided.

Core Elements to Include in a Professional Clause

A clear, enforceable non-disparagement clause defines prohibited conduct, exceptions, duration, remedies, and applicable law while ensuring mutual understanding of compensation or consideration.

Parties

Identify each contracting party by full legal name and capacity to prevent ambiguity about who is restricted and who holds rights to enforce the clause.

Scope

Define explicitly what constitutes disparaging conduct (spoken, written, online) and whether the restriction is mutual or one-way to avoid overbroad prohibitions.

Exceptions

Carve out statements required by law, truthful statements to regulators, protected whistleblowing, and communications in legal proceedings to avoid conflicts with public policy.

Duration

Specify a clear time limit or state that obligations survive termination for a defined period; open-ended clauses raise enforceability risks in some jurisdictions.

Remedies

Describe remedies for breach such as injunctive relief, liquidated damages, indemnity, or recovery of attorneys' fees to make enforcement predictable.

Governing Law

Choose the state law that will interpret the clause and include venue and dispute resolution provisions to reduce uncertainty about enforcement.

Required Contract Data at a Glance

Party Names: Full legal names
Effective Date: MM/DD/YYYY
Scope Summary: Short scope phrase
Duration: Fixed term or perpetual
Consideration: Dollar amount or benefits
Governing State: Chosen jurisdiction

Step-by-Step: Completing the Non-Disparagement Contract

Follow these steps to prepare, review, and execute the agreement with clarity and legal reliability.

  • 01
    Draft: Fill parties, scope, and exceptions.
  • 02
    Review: Have counsel check public-policy conflicts.
  • 03
    Sign: Obtain signatures and dates from all parties.
  • 04
    Retain: Store executed copy securely with audit trail.

Typical Online Workflow Settings for Execution

Configure the digital signing workflow to ensure signer authentication, routing order, and record capture.

Field Configuration
Signer Order Sequential or parallel routing
Authentication Email + SMS code or stronger
Required Fields Signature, date, initials required
Audit Trail Capture IP, timestamp, device

Where to Send and How to File the Executed Contract

After execution, send certified copies to each party and retain a secure master copy with an audit log.

  • To Parties: Provide fully executed PDF copies
  • Legal Counsel: Share redacted copy for records
  • Company Records: Store master copy in contract repository
  • Regulatory Filings: File if required by settlement terms

Digital Signing Considerations and Platform Needs

Ensure the selected platform meets legal evidence standards (ESIGN/UETA), retains an auditable trail, and supports export of final signed PDFs for long-term storage.

  • Authentication: Email + SMS code or stronger
  • File Formats: PDF and DOCX supported
  • Integrations: CRM, cloud storage connectors

Key Timing Elements and Deadlines

Track execution deadlines, notice windows for breaches, and retention start dates to preserve rights and evidentiary value.

Execution Deadline:

Date by which all parties must sign

Notice Period:

Time to cure alleged breaches

Survival Clause:

When obligations continue after termination

Statute Concerns:

Public-policy windows may void clauses

Record Retention:

Start retention at execution date

Common Drafting and Execution Pitfalls

  • Using overly broad language that restricts protected whistleblowing or truthful statements to regulators, risking invalidation.
  • Failing to define disparagement precisely, which creates ambiguity and enables disputes over scope and applicability.
  • Neglecting to include explicit exceptions for legal obligations, causing conflicts with statutory reporting duties and public policy.
  • Omitting clear consideration or mutuality, which may render the clause unenforceable under contract law in some jurisdictions.

Potential Consequences of a Faulty Clause

Injunction: Court-ordered stop
Damages: Compensatory or liquidated
Attorneys' Fees: Recovery possible by contract
Unenforceability: Clause struck on policy grounds
Regulatory Risk: Violations of whistleblower rules
Reputational Harm: Public disputes intensify damage

eSignature Vendor Comparison for Executing Contracts

Comparison focuses on starting price, trial availability, bulk send, audit trail, HIPAA support, and envelope caps to help compare common capabilities across vendors.

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 Yes, 7-day trial Trial varies by plan Trial varies by plan Trial varies by plan Trial varies by plan
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

Frequently Asked Questions About Non-Disparagement Contracts

Answers to common legal and practical questions about drafting, signing, and enforcing non-disparagement provisions in the United States.


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