Question 1

What is a Non-Disclosure Agreement (NDA)?

Accepted Answer

A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between parties. The party or parties signing the agreement agree that sensitive information they may obtain will not be made available to any others. An NDA may also be referred to as a confidentiality agreement.

Question 2

What is the difference between a unilateral and mutual NDA?

Accepted Answer

A unilateral NDA (one-way) means only one party is sharing confidential information and the other party agrees not to disclose it. A mutual NDA (two-way) means both parties are sharing confidential information with each other and both agree to protect the other's information. Mutual NDAs are common in business partnerships, joint ventures, and merger negotiations.

Question 3

How long should an NDA last?

Accepted Answer

The duration of an NDA depends on the nature of the confidential information and the business relationship. Common terms range from 1 to 5 years. Trade secrets may warrant indefinite protection. The confidentiality obligations typically survive the termination of the agreement for an additional 2 years.

Question 4

Is this NDA template legally binding?

Accepted Answer

This NDA template is designed to be used as a starting point for creating a legally binding agreement. However, laws vary by jurisdiction, and we strongly recommend having it reviewed by a qualified attorney in your jurisdiction before signing. The template includes standard legal provisions that are widely accepted, but specific requirements may differ based on your location and circumstances.

Non-Disclosure Agreement (NDA)

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