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Non-Disclosure Agreement

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Sample Non-Disclosure Agreement Template (NDA), Confidentiality Agreement Template

(ABC COMPANY) UNILATERAL

CONFIDENTIAL DISCLOSURE AGREEMENT

THIS AGREEMENT dated , 20___, by and between ABC Company, a (your state) Corporation (“ABC Company”) and (“Recipient”).

WHEREAS, ABC Company and Recipient, for their mutual benefit and pursuant to a working relationship which has been or may be established, anticipate that ABC Company may disclose or deliver to Recipient documents, components, parts, information, drawings, data, sketches, plans programs, specifications, techniques, processes, software, inventions and other materials, both written and oral, of a secret, confidential or proprietary nature, including without limitation any and all information relating to marketing, finance, forecasts, invention, research, design or development of information system and any supportive or incidental subsystems, and any and all subject matter claimed in or disclosed by any patent application prepared or filed by or behalf of by ABC Company, in any jurisdiction, and any amendments or supplements thereto (collectively, “Proprietary Information”); and

WHEREAS, ABC Company desires to assure that the confidentiality of any Proprietary Information is maintained;

NOW, THEREFORE, in consideration of the foregoing premises, and the mutual convenants contained herein, ABC Company and Recipient hereby agree as follows:

1. For a period of sixty (60) months from the date hereof, Recipient shall hold in trust and confidence, and not disclose to others or use for Recipient's own benefit or for the benefit of another, any Proprietary Information which is disclosed to Recipient by ABC Company at any time between the date hereof and twelve (12) months thereafter. Recipient shall disclose Proprietary Information received under this Agreement to person within its organization only if such persons (i) have a need to know and (ii) are bound in writing to protect the confidentiality of such Proprietary Information. This paragraph 1 shall survive and continue after any expiration or termination of this Agreement and shall bind Recipient, its employees, agents, representatives, successors, heirs and assigns.

2. The undertakings and obligations of Recipient under this Agreement shall not apply to any Proprietary Information which: (a) is described in an issued patent anywhere in the world, is disclosed in a printed publication available to the public, or is otherwise in the public domain through no action or fault of Recipient; (b) is generally disclosed to third parties by ABC Company without restriction on such third parties, or is approved for release by written authorization of ABC Company; (c) if not designated “confidential” at the time of first disclosure hereunder, or is not later designated in writing by ABC Company within thirty (30) days from disclosure to Recipient to be of a secret, confidential or proprietary nature; or (d) is shown to ABC Company by Recipient, within ten (10) days from disclosure, by underlying documentation to have been known by Recipient before receipt from ABC Company and/or to have been developed by Recipient completely independent of any disclosure by ABC Company.

3. Title to all property received by Recipient from ABC Company, including all Proprietary Information, shall remain at all times the sole property of ABC Company, and this Agreement shall not be construed to grant to Recipient any patents, licenses or similar rights to such property and Proprietary Information disclosed to Recipient hereunder.

4. Recipient shall, upon request of ABC Company, return to ABC Company all documents, drawings and other tangible materials, including all Proprietary Information and all manifestation thereof, delivered to Recipient, and all copies and reproductions thereof.

5. The parties further agree to the following terms and conditions:

i. Any breach by Recipient of any of Recipient's obligations under this Agreement will result in irreparable inquiry to ABC Company for which damages and other legal remedies will be inadequate. In seeking enforcement of any of these obligations, ABC Company will be entitled (in addition to other remedies) to preliminary and permanent injunctive and other equitable relief to prevent, discontinue and/or restrain the breach of this Agreement.

ii. If any provision of this Agreement is invalid or unenforceable, then such provision shall be construed and limited to the extent necessary, or severed if necessary, in order to eliminate such invalidity or unenforceability, and the other provisions of this Agreement shall not be affected thereby.

iii. In any dispute over whether information or matter is Proprietary Information hereunder, it shall be the burden of Recipient to show both that such contested information or matter is not Proprietary Information within the meaning of this Agreement, and that it does not constitute a trade secret under the Uniform Trade Secrets Act or successor or similar law in effect in the State of (your state).

iv. No delay or omission by either party in exercising any rights under this Agreement will operate as a waiver of that or any other right. A waiver or consent given by either party on any one occasion is effective only in that instance and will not be construed as a bar to or waiver of any right on any other occasion.

v. This Agreement shall be binding upon and will inure to the benefit of the parties hereto and their respective successors and assigns.

vi. This Agreement is governed by and will be construed in accordance with the laws of the State of , and the courts of shall be the exclusive forum.

vii. This Agreement is in addition to any prior written agreement between ABC Company and Recipient relating to the subject matter of this agreement; in the event of any disparity or conflict between the provision of such agreements, the provision which is more protective of Proprietary Information shall control. This Agreement may not be modified, in whole or in part, except by an agreement in writing signed by ABC Company and Recipient.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

ABC Company

By:

Signature

Printed Name

Title

RECIPIENT

By:

Signature

Printed Name

Title

Enter text✕

What a Non-Disclosure Agreement Covers

A Non-Disclosure Agreement (NDA) is a legal contract that creates a confidential relationship between parties who share sensitive information. NDAs define what information is protected, how recipients may use it, and the duration of confidentiality. They can be mutual or one-way, include exclusions, and specify remedies for breach. When executed electronically, NDAs are generally enforceable under U.S. law when they meet e-signature requirements such as intent, consent, attribution, and reliable record retention.

Why use a Non-Disclosure Agreement

An NDA protects proprietary information, clarifies permitted disclosures, reduces litigation risk, and preserves trade secret status. It sets expectations for employees, vendors, partners, and prospective investors while documenting remedies and governing law.

Why use a Non-Disclosure Agreement

Who typically prepares and signs NDAs

Choose the NDA type and signatory authority that match the transaction: one-way for disclosures and mutual for reciprocal exchanges.

  • Startups and founders exchanging investor or partner information for due diligence and term-sheet discussions.
  • In-house legal teams and outside counsel protecting proprietary processes, IP, and business plans during negotiations.
  • Vendors, contractors, and consultants who receive customer data, specs, or trade secrets while performing services.

Core clauses every professional NDA should include

A well-drafted NDA balances clarity and enforceability by defining covered information, setting use limits, and describing remedies and administrative details.

Definition of Confidential Information

Precisely describe the categories and formats of protected information and include examples to avoid ambiguity, while stating any required notice procedures for marked materials.

Permitted Use and Restrictions

Limit recipient use to specific purposes, prohibit reverse engineering and unauthorized disclosure, and require safeguards consistent with industry practice.

Exclusions from Confidentiality

List standard exceptions such as publicly known information, independently developed materials, or disclosures required by law to prevent overbroad protection.

Term and Survival

Specify how long confidentiality lasts during and after the agreement, and identify which obligations (e.g., non‑disclosure, return of materials) survive termination.

Return or Destruction

Require written confirmation that confidential materials are returned or destroyed upon request or at termination, and define acceptable retention for archival backups.

Remedies and Liability

Describe injunctive relief, damages, indemnity, and limitations of liability where appropriate to make enforcement expectations clear.

Step-by-step: completing and executing an NDA

Follow a consistent sequence from drafting to execution to reduce disputes and ensure enforceability.

  • 01
    Draft: Prepare clauses tailored to the disclosure and business purpose.
  • 02
    Review: Have legal counsel verify scope, exclusions, and remedies.
  • 03
    Authorize Signers: Confirm each signer's authority and role before sending.
  • 04
    Execute and Archive: Obtain signatures, save the final PDF, and retain the audit trail.

Typical online NDA signing flow

Electronic execution follows predictable steps whether you use a self-serve platform or an integrated workflow.

  • Upload Document: Add the NDA in PDF or DOCX format.
  • Place Fields: Insert signature, date, and initial fields where required.
  • Deliver to Signers: Send by email or sharing a secure signing link.
  • Capture Evidence: Collect timestamps, IP, and signer authentication logs.

Basic configuration settings for an e-signed NDA

Configure these settings before sending to reduce follow-ups and ensure compliance with internal policies.

Field Configuration
Authentication Email link with optional SMS code
Signing Order Single or sequential signer order
Reminders Set automated email reminders
Retention Export signed PDF and save audit trail

Digital signing and technical compatibility

Ensure the platform meets any industry compliance needs (for example HIPAA where health data is involved) and preserves an accessible, tamper-evident audit trail.

  • Integrations: CRM and storage integrations
  • File formats: PDF and DOCX supported
  • Auth methods: Email, SMS, or multi-factor

Essential data elements to include

Parties' legal names: Full registered entity or legal person names
Contact addresses: Street, city, state, ZIP
Effective date: MM/DD/YYYY format
Confidential summary: Brief description of protected categories
Governing law: Named state for dispute resolution
Authorized signatures: Signer name, title, and date

Common mistakes when preparing an NDA

  • Overbroad definitions that attempt to cover all information can render protections unenforceable or invite litigation over scope.
  • Failing to identify authorized signers or using unsigned templates leaves parties without clear attribution for enforcement.
  • Neglecting survival clauses causes obligations to expire immediately at termination, undermining post-termination protection.
  • Using ambiguous governing law or venue clauses increases uncertainty and may complicate enforcement across jurisdictions.

Risks and potential consequences of a flawed NDA

Breach liability: Damages and injunctions possible
Loss of trade secret: Misclassification may forfeit protection
Unclear scope: Leads to costly disputes
Missing signature: May invalidate the agreement
Wrong signatory: Lack of authority weakens enforcement
Improper retention: Evidence gaps in lawsuits

Sample eSignature vendor comparison for NDA execution

Compare basic pricing and capabilities for common eSignature vendors. Use plan details and compliance features when selecting a provider for confidential documents.

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 trial Varies by plan Varies by plan Varies by plan 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 Varies Varies

Real-world examples of NDAs in practice

Small and medium organizations illustrate how NDAs support deal flow and operational security.

Optica Ventures — Operational Ease

Optica used an electronic signing flow to streamline investor diligence and speed negotiations.

  • The interface reduced turnaround time and signer confusion.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers." — Brian Fitzgibbons, COO, Optica Ventures LLC.

Martin Properties — Field Execution

A real estate operator executed NDAs while on site to protect listing details.

  • Mobile signing enabled immediate exchange and reduced delays.
  • "I can process and execute all of these documents online with 100% compliance and built-in security." — Tim Martin, Founder, Martin Properties.

Typical signatories and their authority

General Counsel

In-house counsel or retained outside counsel typically draft or approve NDA language and confirm that signatories have authority to bind the organization.

Authorized Officer

A corporate officer, managing member, or authorized agent signs on behalf of an entity; include printed name and title to demonstrate authority.

Practical tips for accurate and efficient NDAs

Adopt consistent processes to reduce negotiation time and strengthen enforceability.

Use clear, limited definitions
Define confidential categories narrowly with examples so parties understand scope and courts can reliably enforce protections.
Specify duration and survival
State exact confidentiality term and which obligations survive termination to avoid ambiguity later.
Confirm signatory authority
Verify corporate or individual authority before sending to avoid enforceability challenges.
Preserve audit evidence
Retain signed PDFs, timestamps, and authentication logs to support future enforcement.

Frequently asked questions about NDAs

Answers to common execution and enforcement questions to help practitioners avoid scope and validity issues.


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