Free Non-Disclosure Agreement (NDA) Template

Non-Disclosure Agreement (NDA) Template

A non-disclosure agreement (NDA) is a legally binding contract that prevents an individual or organization from disclosing confidential information shared with them by another party. NDAs are used in business relationships to safeguard sensitive information such as trade secrets, financials, client data, proprietary systems, or product strategies.

Last updated June 17th, 2025

A non-disclosure agreement (NDA) is a legally binding contract that prevents an individual or organization from disclosing confidential information shared with them by another party. NDAs are used in business relationships to safeguard sensitive information such as trade secrets, financials, client data, proprietary systems, or product strategies.

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When Is an NDA Used?

NDAs are used in many professional settings, including:

  • Hiring employees, freelancers, or consultants
  • Investor or vendor discussions
  • Product development or tech partnerships
  • Business sales or mergers
  • Joint ventures and collaborations

Whether you share a pitch deck, a prototype, or a process, an NDA helps ensure the information stays confidential.

What to Include in an NDA

For the agreement to be enforceable and effective, it should include these five key elements:

  • Consideration
    A benefit must be offered in exchange for the confidentiality, such as employment, payment, or access to proprietary information. This ensures the agreement is legally valid.
  • Definition of Trade Secrets or Confidential Information
    The agreement must clearly state what information is protected. This may include:
    • Business plans
    • Client lists
    • Software code
    • Manufacturing processes
    • Financial projections
  • Reasonableness of Terms
    The NDA should be fair and not overly broad. Courts may invalidate NDAs that attempt to restrict unrelated or publicly known information.
  • Duration of Confidentiality
    A reasonable timeframe should be included—typically 1 to 5 years, depending on the nature of the information. Some agreements may require indefinite confidentiality for highly sensitive data (like formulas or algorithms).
  • Remedies for Breach
    The NDA should outline what happens if the agreement is violated, including potential legal action, injunctions, or monetary damages.

What Is a Trade Secret?

Under the Uniform Trade Secrets Act, a trade secret is defined as:

Information—including a formula, pattern, method, program, or process—that:

  • Has economic value because it is not generally known or easily discoverable by others
  • Is subject to reasonable efforts to keep it confidential

Examples include a restaurant’s signature recipe, a software algorithm, or a proprietary sales process.

 

Types of NDAs

  • Unilateral NDA – One party agrees not to disclose information (e.g., employee or freelancer agreements)
  • Mutual NDA – Both parties share and protect each other’s information (e.g., joint ventures or negotiations)
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