What is a Non-Disclosure Agreement (NDA)?

A Non-Disclosure Agreement (NDA), also called a confidentiality agreement, is a legal contract that creates a confidential relationship between parties. It requires the receiving party to keep certain information secret and not disclose it to third parties. NDAs are commonly used in business to protect trade secrets, proprietary information, and sensitive data.

When should I use an NDA?

Use an NDA before sharing confidential information including: business plans with investors, trade secrets with potential partners, proprietary technology with contractors, customer lists with employees, financial data with consultants, or any sensitive business information with third parties who need access.

What is the difference between mutual and unilateral NDAs?

A unilateral NDA protects information disclosed by one party (disclosing party) to another (receiving party). A mutual NDA protects information shared by both parties. Use mutual NDAs when both parties will exchange confidential information, such as in partnership discussions or merger negotiations.

How long should an NDA last?

NDA terms typically range from 2-5 years, though they can be longer for trade secrets. The confidentiality period should be long enough to protect your interests but reasonable given the nature of the information. Some NDAs have perpetual terms for information that remains confidential indefinitely.

What information is covered by an NDA?

NDAs typically cover technical information, business strategies, financial data, customer lists, proprietary processes, product designs, marketing plans, and any other information marked as confidential. The agreement should clearly define what constitutes "confidential information" for your specific situation.

What happens if someone violates an NDA?

NDA violations can result in legal action including injunctive relief (court order to stop disclosure), monetary damages for losses caused by the breach, and attorney fees. Because confidentiality breaches cause irreparable harm, courts often grant immediate injunctions to prevent further disclosure.

Are NDAs enforceable?

Yes, NDAs are generally enforceable if properly drafted with clear definitions, reasonable scope, and legitimate business purpose. Courts will enforce NDAs that protect genuine trade secrets and confidential information. However, NDAs cannot prohibit whistleblowing or disclosures required by law.

Do I need a lawyer to create an NDA?

While our automated AI form assistance provides professional NDA templates suitable for most business situations, complex scenarios involving highly valuable trade secrets, international transactions, or unique confidentiality needs may benefit from legal review. Our templates provide a strong foundation that many businesses use successfully.

Non-Disclosure Agreement

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Agreement type

What type of NDA is this? *

Mutual NDAs protect information shared by both parties.

Not sure?

Use mutual if both sides will share confidential information. Use unilateral if only one side discloses.

Disclosing party

Who is sharing confidential info? *

Disclosing party address? *

Receiving party

Who is receiving the info? *

Receiving party address? *

Confidential information

What information is confidential? *

Be specific — trade secrets, financials, customer lists, product designs, etc.

Not sure?

List the kinds of information protected — customer lists, pricing, product plans, financials, etc.

Why is information being shared? *

How long does confidentiality last? *

Not sure?

Fixed term ends after a set period. Indefinite lasts until the information is no longer secret.

When the relationship ends, receiving party must: *

Legal

Effective date? *

Which state is this document for? *

Not sure?

Usually this is the state where the parties operate or where disputes would be handled.

About this document, FAQs & related forms

What your Non-Disclosure Agreement includes

Disclosing and receiving parties
Definition of confidential information
Permitted use
Exclusions from confidentiality
Term and duration
Return or destruction of materials
Remedies
Governing law
Signature blocks

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Why not just use a free template?

Free templates often leave blanks, include irrelevant clauses, miss key terms, and require you to know what to edit. LeaseCraft builds the document from your answers, checks for missing details, shows optional protections, and provides PDF/DOCX files ready for review and signing.

Frequently Asked Questions about Non-Disclosure Agreement

This NDA covers confidentiality — use a separate agreement for IP assignment if needed.

Your wizard answers determine whether one or both parties disclose confidential information.

Every purchase includes PDF and editable Word (DOCX) files.

Yes — editable DOCX plus limited post-purchase revisions (24 hours or 3 edits).

Non-Disclosure Agreement

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Agreement type

Disclosing party

Receiving party

Confidential information

Legal

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What your Non-Disclosure Agreement includes

Why LeaseCraft?

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Frequently Asked Questions about Non-Disclosure Agreement

Does this include IP ownership?

One-way or mutual?

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