49+ Sample Non Disclosure Agreement Templates

What Is a Non-Disclosure Agreement?

Did you know that in 2019, around 164.68 million private records were exposed in the US? As reported by Statista, data breaches reached 1,473 at that time. Some cases were caused by a poor acknowledgment of the confidential relationship between parties. How so? Even looking at a hard copy of someone’s medical records without authorization is a data breach already. And that explains why non-disclosure agreements are vital. Such contracts or agreements outline the terms and conditions in prohibiting the sharing of any confidential information. Details involving trade secrets, propriety information, formula, and so much more are protected in the NDA. And once each party signs the form, the agreement takes effect and must be followed.

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According to a 2019 survey, approximately 164.68 million private records were exposed in America due to data breaches.

Also, Forbes reported that in 2014, around 300 data breaches caused theft to over 100,000 or more records.

Why Are NDAs Important?

Non-disclosure or confidentiality agreements are critical for protecting secrets and rights. Nobody would create the NDA without something to protect. Without clear terms between two or more parties on what to disclose or not to disclose, they might not meet ends on what to follow exactly. According to Investopedia, the NDA is even commonly introduced by any business for potential joint ventures. The same goes for every employee who is expected not to share a manager’s confidential business info. And no matter what topic is restricted to disclose, like business processes, strategies, blueprints, designs, formulas, software—you name it, the regulations are specified and explained thoroughly in the document.

Furthermore, take note that NDAs prevent serious conflicts because of stipulating some rules. If anyone commits a dispute or disobeyed some terms in the agreement, then termination may follow. Or perhaps, go to court in settling such matters. The truth is keeping secrets can be dangerous. What if an employer trusts a worker so much that the employer was comfortable to reveal the company’s strategy for sales. But then, the employer had to let go of that worker for causing bad business. So, the resigned employee might leak the enterprise’s strategies as revenge. To prevent such circumstances, produce well-planned legally binding NDAs pronto.

What Are Mutual and Non-Mutual NDAs?

Generally, there are two types of confidentiality or non-disclosure agreement—the mutual and non-mutual NDA. If the binding agreement is mutual, that means sending and receiving restricted details happens to all parties. Mutual NDAs are usually safer since both sides have their secrets to keep. So if Party A reveals the secrets of Party B, then Party B can make it fair by also revealing Party A’s confidential info. Meanwhile, non-mutual NDA occurs when there is one-sided confidentiality. Hence, only one party has a secret to share, and the latter prevents sharing the detail. The party with restricted info should be careful in choosing who to share to avoid conflict or blackmail, even if that person is a family member, partner, or personal assistant.

The Anatomy of NDA: Non-Disclosure Agreement Elements

Just like any agreement, there are essential factors worth considering in crafting NDAs. And a non-disclosure agreement would not be called as such without its main elements. What are they? In this segment, we outlined eight of the elements generally found in standard NDAs.

Title or Purpose: Without the words “Non-Disclosure Agreement” as the title, people would not easily get what the full form is about. So, ensure that the title or purpose of the form is labeled. And a short introductory statement will do to bring the gist in the document.Names of Parties: Who are the parties involved in the first place? Of course, the names of every party should be mentioned in the NDA. Their complete names are necessary, and make sure no person is left out. Otherwise, anyone not included in the list but knows about confidential details can easily disclose without facing legal consequences.Confidential Info Definition: Every NDA has its trade secrets. And there should be a brief definition of whatever constitutes confidential information in the sheet. This part is where a more detailed explanation of the NDA’s purpose can be mentioned too. The goal is to identify the confidential matter and expound it for clarification.Confidentiality Exclusions: Are there any exclusions from confidentiality? Note them down. There might be instances where some details were not specified. An example is when a group decides not to disclose any detail about research findings. If findings should not be disclosed, does that mean it is okay to share what is being investigated but not the findings? What is excluded and included should be clarified.Instructions: In expounding the inclusions and exclusions, input the instructions in another category of the NDA. In this segment, there will be statements signifying the appropriate uses of details to be revealed. Aside from giving the dos and don’ts, you can list some instructions.Period: Never forget to jot down when the NDA begins taking effect and when it ends. For example, do signed NDAs already mean that the agreement starts to take effect? And deadlines should be made. After the day the NDA’s period ends, that means disclosing the information is certainly allowed.Miscellaneous Provisions: Are there still other concerns worth adding? List other relevant miscellaneous provisions in the agreement too. Examples include state laws and regulations applicable to the whole agreement. The same goes for which of the parties will pay for attorney fees whenever disputes come. Provisions not stated here already mean that the unstated provisions are allowed.Signature Blocks: Signatures are not entirely required in legal contracts or agreements. But, they are extremely helpful for confirmation purposes. Signed forms indicate that each party has read and understood the terms; hence, they affixed their signatures. And signed documents are also considered as completed forms.

How to Make an Excellent Non-Disclosure Agreement

What if NDAs did not exist? In a 2014 survey, 300 data breaches caused theft to 100,000 or more disclosed records. Breaches, arguments, and conflicts would continue to be a global problem without agreements that tackle keeping things secret. And since you already know about NDA’s definition, importance, and elements, your last concern is to figure out how to create the NDA itself. And in just five steps, you can make an excellent non-disclosure agreement in no time.

Step 1: Use the Appropriate Template

Have you checked our collection of sample non-disclosure agreement templates already? They are ready to download anytime. More so, you can edit the template’s features and content easily, so there is no need to begin from scratch. Your only concern is to explore all available templates and find the best example that suits your application. And with its fillable features, you can add what needs to complete the document—easy, right?

Step 2: Give a Clear Introduction

In your document, ensure to write a clear introduction. Although the title or purpose of the NDA would suffice, adding further background is necessary to clarify. Moreover, ensure that the parties are introduced, especially when they are part of the NDA’s important elements. Aside from the names, mentioning their contact details is crucial if anyone needs to contact each other.

Step 3: Insert the Rest of the NDA Elements

Do not simply check the NDA’s title and party info because there are still plenty of non-disclosure agreement elements, as discussed earlier. Ensure that the exclusions, instructions, schedule, etc. are present. Most importantly, there are standards in any agreement. Avoid adding or lacking aspects that invalidate the document.

Step 4: Specify How to Protect Confidential Info

Many contracts already know how to define what topic or secret should not be disclosed and the exclusions. But, some people fail to specify what must be done in protecting such confidential matters. Be instructive in mentioning every obligation to fulfill between parties. And if parties have lesser questions from your statements, the better.

Step 5: Be Strict with the Clauses and Provisions

It is no surprise that policies must be followed strictly, no matter what. But, are the clauses or provisions stated in the NDA worth following in the first place? Or to be more specific, are they strict enough? Aside from incorporating all the rules, mention what consequences the disobedient party would take if it so happens they commit a dispute. Should there be a contract termination, dispute fines, or any other arrangement? And once everything is all set, launch the agreement.

FAQs

What are the other names of a non-disclosure agreement?

A non-disclosure agreement has many different names. Although there are slight differences, they have similarities, particularly in preventing to disclose certain information. Names include the confidentiality agreement, confidential disclosure agreement, secrecy agreement, proprietary information agreement, and silence contract.

How many signatures are needed in the NDA?

The number of signatures would depend on how many parties are involved in the agreement. And the signatures define if a document is unilateral, bilateral, or multilateral. Unilateral means only a single party signed the form. Two parties refer to bilateral. Meanwhile, multilateral involves a whole group with entries not to disclose some details.

What is the difference between a confidentiality agreement and a non-disclosure agreement?

Non-disclosure agreements are generally used for not revealing personal or private details. Meanwhile, confidentiality agreements are mostly used when a higher degree of a confidential matter is involved.

Do you know how to keep secrets professionally already? Good. But do not settle your concerns there. Even if you a pro at not disclosing any info, no matter how high the stakes are, how about the rest of the parties who know the details? Are they just as good at keeping secrets like you? And that example explains why you cannot forget to draft a non-disclosure agreement. Always safeguard everything before the worst circumstances happen. And you can download our sample NDA templates as a start.