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Non-Disclosure Agreement (NDA) Form: Protecting Your Secrets

Jul 31, 2023
(updated: Aug 2, 2023)
Max 5 min read

In the fast-paced and competitive business world, information is often the most valuable asset a company possesses. It could be trade secrets, proprietary technology, computer programs, marketing strategies, customer data, financial information, or any other sensitive information that provides a competitive advantage. However, sharing such information with employees, partners, vendors, or even potential investors can be a risky proposition without proper safeguards in place. 

This is where a Non-Disclosure Agreement (NDA) comes into play as a crucial legal instrument to protect your secrets and maintain confidentiality. Are you concerned about protecting your company's intellectual property and confidential information? Do you want to explore the importance and benefits of Non-Disclosure Agreements (NDAs)? If so, join us on an insightful journey through our comprehensive article.

Understanding Non-Disclosure Agreement (NDA) Legal Documents

A Non-Disclosure Agreement used in a joint venture, also known as a confidential disclosure agreement or secrecy agreement, is a legally binding contract that establishes a confidential relationship between two or more parties. A Non-Disclosure Agreement aims at safeguarding sensitive information from being disclosed to unauthorized third parties. By signing an NDA, the receiving party commits to keeping the disclosed information confidential and not using it for any purpose other than the one specified in the agreement.

Who Needs an NDA?

Various individuals and entities may require a Non-Disclosure Agreement (NDA) form to protect their sensitive information and intellectual property. The need for an NDA can arise in the following scenarios:

  1. Companies and Businesses: Businesses often need NDAs when sharing proprietary technology, trade secrets, marketing strategies, customer data, or other sensitive information with employees, contractors, vendors, or partners.
  2. Startups and Entrepreneurs: Startups and entrepreneurs may use NDAs when discussing their innovative ideas or business plans with potential investors, advisors, or partners.
  3. Research and Development Teams: R&D teams working on new products or technologies might need NDAs to maintain confidentiality during collaborations or joint ventures.
  4. Freelancers and Independent Contractors: Freelancers or independent contractors working with clients might require NDAs to ensure that any confidential information they come across is protected.
  5. Manufacturers and Suppliers: Manufacturers and suppliers may use NDAs when disclosing proprietary manufacturing processes or design specifications to clients.
  6. Service Providers: Service providers, such as IT companies or marketing agencies, might use NDAs when dealing with sensitive client data.
  7. Investors and Venture Capitalists: Investors and venture capitalists may require NDAs before reviewing confidential financial information or business plans of potential investment opportunities.
  8. Inventors and Innovators: Individuals with new inventions or innovations might need NDAs before disclosing their ideas to potential licensees or manufacturers.

Overall, anyone who shares confidential information with others and wishes to protect their secrets from unauthorized disclosure or misuse may need an NDA template. Having an NDA in place helps establish legal protection and fosters trust in business relationships.

Why Is a Confidentiality Agreement Crucial for Freelancers?

Non-Disclosure Agreement (NDA) forms are essential for freelancers for several reasons:

  1. Protecting Client Information: Freelancers often work closely with clients, and they may come across sensitive information, such as business strategies, financial data, customer lists, or proprietary technology. An NDA ensures that freelancers keep this information confidential and do not disclose it to unauthorized parties.
  2. Maintaining Client Trust: Signing an NDA shows professionalism and a commitment to confidentiality, which helps build trust between the freelancer and their clients. Clients are more likely to share sensitive information with a freelancer who has agreed to keep it confidential.
  3. Avoiding Legal Disputes: In the absence of an NDA, clients might be hesitant to work with freelancers or might be concerned about the potential for data breaches or unauthorized disclosures. Having a signed NDA in place provides a legal framework to address any breaches of confidentiality, helping to avoid costly legal disputes.
  4. Preserving Intellectual Property: If a freelancer creates original work, such as designs, code, or content, an NDA can specify that the intellectual property rights belong to the client. This ensures that the client retains full ownership and control over the work produced.
  5. Enhancing Professionalism: Using NDAs in client engagements demonstrates a freelancer's commitment to professional standards and responsible handling of confidential information. It sets a positive impression and can lead to repeat business and referrals.
  6. Ensuring Fair Compensation: An NDA can also include clauses related to payment terms and invoicing, ensuring that freelancers receive fair compensation for the work performed and are protected against non-payment or disputes.

In summary, an NDA form is crucial for freelancers as it provides a legal framework to protect sensitive client information, maintain trust, prevent legal disputes, preserve intellectual property rights, and demonstrate professionalism in their freelance engagements and business relationship.

Parties Involved in an NDA

Two parties involved in a Non-Disclosure Agreement (NDA) legal contract are the disclosing party and the receiving party. The first type of party is the entity or individual sharing confidential information, seeking protection. 

On the other hand, the receiving party is the entity or individual receiving the confidential information and committing to keep it confidential and use it only for the agreed-upon purposes. The NDA establishes a confidential relationship between the parties, ensuring that sensitive information remains secure and protected from unauthorized disclosure or misuse.

Disclosing party

The entity or individual that shares sensitive information and seeks protection. This can be a company, an inventor, an entrepreneur, or anyone with confidential information to safeguard.

Receiving party

The entity or individual that receives the confidential information. This party could be employees, contractors, business partners, vendors, or investors.

Types of NDAs

Non-Disclosure Agreements (NDAs) come in various forms, each designed to suit specific business needs. These types of NDAs cater to the diverse requirements of confidentiality arrangements, ensuring that sensitive information remains protected. Different NDAs may address one-way or two-way confidentiality relationships, with varying stipulations on disclosure, permitted use, and the duration of confidentiality. 

Companies can choose the most suitable NDA type based on their unique circumstances and the nature of the information they need to safeguard.

Unilateral NDA

This is the most common type of NDA and involves a one-way confidentiality arrangement. The disclosing party shares sensitive information with the receiving party, who agrees to keep it confidential. This type is often used when an individual or a company shares confidential information with employees or contractors.

Mutual NDA

Also known as a bilateral NDA, this type of agreement establishes a two-way confidentiality relationship. Both parties may be sharing sensitive information with each other, and both parties are bound to keep each other's information confidential. Mutual NDAs are frequently used in partnerships, joint ventures, or negotiations between two companies.

Key Elements of an NDA

A well-structured Non-Disclosure Agreement (NDA) comprises essential components that are crucial for ensuring confidentiality. These key elements define the scope and purpose of the agreement, specify the confidential information to be protected, and outline the obligations of the parties involved. 

Additionally, an effective NDA includes provisions regarding the duration of confidentiality, exclusions from protection, and the consequences of breaching the agreement. By incorporating these elements, an NDA provides a solid legal foundation to safeguard sensitive information and foster trust in business relationships.

Definition of confidential information

Clearly define the information that is considered confidential. This can include trade secrets, financial data, customer lists, marketing strategies, product prototypes, or any proprietary unique information.

Duration of confidentiality

Specify the period during which the receiving party must maintain the confidentiality of the disclosed information. The duration can vary depending on the nature of the information but is usually limited to a reasonable timeframe.

Permitted use

Outline the purposes for which the receiving party is allowed to use the confidential information. Typically, this should be restricted to specific business purposes and not for personal gain or for the benefit of competitors.

Obligations of the receiving party

Clearly state the responsibilities of the receiving party, including the duty to protect the information, prevent unauthorized disclosure, and take reasonable security measures.


Identify information that is not covered by the NDA. This may include information already in the public domain or information that the receiving party can demonstrate was already known to them.

Non-disclosure and non-use obligations

Specify that the receiving party must not disclose the confidential information to third parties or use it for any purpose other than the permitted use.

Consequences of breach

Clearly state the consequences of breaching the NDA. This can include legal remedies, such as damages, injunctions, or termination of business relationships.

Non-Disclosure Agreement Template

A Non-Disclosure Agreement (NDA) serves as a critical legal tool to protect sensitive information from falling into the wrong hands. This NDA template provides a comprehensive framework for creating a legally binding agreement between the parties, ensuring that confidential information remains secure and confidential.

The NDA agreement template establishes clear definitions of confidential information, outlines the obligations of the receiving party, and specifies the duration of confidentiality. It also addresses exclusions from the confidentiality requirements and outlines the consequences of any breach.

Whether you are an entrepreneur, a business owner, or an individual looking to protect your sensitive information, this NDA template will guide you in creating a robust and customized agreement that safeguards your secrets and fosters trust in your business relationships.

NDA template example

[Your Company Name]

[Your Company Address]

[City, State, ZIP]


Non-Disclosure Agreement (NDA)

This Non-Disclosure Agreement (the "Agreement") is made and entered into as of [date], by and between [Your Company Name], with its principal place of business at [Your Company Address] (hereinafter referred to as the "Disclosing Party"), and [Recipient's Name], residing at [Recipient's Address] (hereinafter referred to as the "Receiving Party"). The Disclosing Party and the Receiving Party shall be collectively referred to as the "Parties."


The Parties desire to discuss and share certain confidential information related to [briefly describe the purpose of the agreement, e.g., "business collaboration," "technology development," etc.] (hereinafter referred to as the "Purpose").

Definition of confidential information

"Confidential Information" shall mean any non-public information, data, trade secrets, proprietary knowledge, technical information, financial data, business strategies, customer lists, marketing plans, and other sensitive information disclosed by the Disclosing Party to the Receiving Party, whether orally, in writing, or in any other form, and whether or not marked or identified as confidential at the time of disclosure.

Obligations of the Receiving Party

  1. The Receiving Party shall keep all Confidential Information in strict confidence and shall not disclose, directly or indirectly, any part of it to any third party without the prior written consent of the Disclosing Party.
  2. The Receiving Party shall use the Confidential Information solely for the Purpose and shall not use it for any other purpose without the prior written consent of the Disclosing Party.
  3. The Receiving Party shall take reasonable measures to protect the Confidential Information from unauthorized access, use, or disclosure. These measures shall be at least as protective as the Receiving Party's measures to protect its own confidential information.
  4. The obligations of confidentiality and non-use set forth in this Agreement shall continue for a period of [duration of confidentiality, e.g., 2 years] from the date of disclosure of each piece of Confidential Information.


The obligations of confidentiality and non-use shall not apply to any information that:

  1. Was known to the Receiving Party before disclosure by the Disclosing Party, as evidenced by written records;
  2. Is or becomes publicly available through no fault of the Receiving Party;
  3. Is independently developed by the Receiving Party without reference to the Confidential Information;
  4. Is lawfully obtained from a third party without any obligation of confidentiality.

Consequences of breach

In the event of a breach or threatened breach of this Agreement by the Receiving Party, the Disclosing Party shall be entitled to seek injunctive relief and/or damages, including but not limited to any direct, indirect, incidental, special, or consequential damages resulting from the breach.

Entire agreement

This Agreement constitutes the entire understanding between the Parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, whether oral or written.

Governing law and jurisdiction

This Agreement shall be governed by and construed in accordance with the laws of [state/country], without regard to its conflict of laws principles. Any dispute arising out of or in connection with this Agreement shall be submitted to the exclusive jurisdiction of the courts of [state/country].

Binding effect

This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their respective successors, assigns, and legal representatives.


This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same agreement.

IN WITNESS WHEREOF, the Parties have executed this Non-Disclosure Agreement as of the date first above written.

[Your Company Name] [Recipient's Name] By: ___________________________ ___________________________ [Your Name, Title] [Recipient's Name, Signature]

Benefits of Using an NDA

Utilizing a Non-Disclosure Agreement (NDA) offers numerous advantages for businesses and individuals alike. By implementing an NDA, parties can protect their intellectual property and sensitive information, ensuring a competitive edge and preventing unauthorized disclosure. 

Moreover, NDAs promote trust between parties involved in collaborations or negotiations, facilitating a conducive environment for exchanging valuable information. With legal recourse available in case of breaches, NDAs provide peace of mind and confidence when sharing confidential data, ultimately contributing to the success and security of business ventures.

Protecting intellectual property

NDAs play a crucial role in safeguarding a company's intellectual property and trade secrets. This protection helps maintain a competitive advantage and ensures that valuable innovations are not exploited by unauthorized parties.

Building trust

Signing an NDA shows a commitment to confidentiality and helps build trust between the parties involved. It demonstrates a serious intent to protect sensitive information.

Facilitating collaborations

In business collaborations, partners often need to share valuable information to achieve common goals. An NDA provides reassurance that shared information will remain confidential, enabling productive partnerships.

Legal recourse

If a breach occurs, the NDA provides a legal basis for seeking damages and obtaining injunctions to prevent further disclosure or misuse of confidential information.

Preserving negotiation advantage

During negotiations, parties may share sensitive information to assess potential deals. An NDA ensures that even if the deal doesn't materialize, the shared information remains confidential.

Implementing NDAs Effectively

Implementing Non-Disclosure Agreements (NDAs) effectively requires careful consideration and adherence to best practices. Customizing NDAs to the specific situation, seeking legal expertise, and educating stakeholders on confidentiality are crucial steps. 

Clear identification of confidential information, secure document management, and regular review and updates are vital to ensure maximum protection. By following these practices, businesses can strengthen their NDAs and make sure that sensitive information stays confidential, thus fostering trust and enabling successful collaborations.

To make the most of NDAs and ensure they provide robust protection, consider the following best practices


Tailor each NDA to the specific situation and parties involved. Generic templates may not address unique concerns or adequately protect specific types of information.

Review by legal professionals

Have NDAs reviewed by qualified legal professionals to ensure they comply with local laws and adequately protect your interests.

Training and awareness

Educate employees and stakeholders about the importance of confidentiality and the implications of NDA violations.

Clear identification of confidential information

Ensure that the confidential information is explicitly identified and only necessary information is disclosed.

Secure document management

Implement secure document management practices to control access to confidential information and track its distribution.

Regular review and update

Periodically review and update NDAs to account for changes in business practices, technology, or legal requirements.

Useful Vocabulary for an NDA Template

An NDA involves a set of essential terms and concepts that play a significant role in safeguarding sensitive information. Some of these elements refer to the type of information protected, the parties involved, and the scope of confidentiality. Additionally, key phrases outline the permitted use of the disclosed information, the duration of protection, and the consequences of any breach. Certain provisions may address exclusions from confidentiality or potential legal remedies in case of violations. 

Understanding and applying this vocabulary is crucial in creating a robust and effective Non-Disclosure Agreement that ensures the security of confidential data and fosters trust in business relationships.

  • Confidential Information: Sensitive data, trade secrets, proprietary knowledge, or any information that is not publicly available and is subject to protection under the NDA.
  • Disclosing Party: The entity or individual sharing confidential information with the receiving party.
  • Receiving Party: The entity or individual who receives and agrees to keep the disclosed information confidential.
  • Unilateral Non-Disclosure Agreement: A one-way confidentiality agreement where only one party shares confidential information with the other.
  • Mutual Non-Disclosure Agreement: A two-way confidentiality agreement where both parties share confidential information with each other.
  • Permitted Use: The specific purposes for which the receiving party is allowed to use the confidential information.
  • Duration of Confidentiality: The period during which the receiving party must maintain the confidentiality of the disclosed information.
  • Exclusions: Information that is not covered by the NDA, such as publicly available information or information already known to the receiving party.
  • Breach: A violation of the NDA's terms, such as unauthorized disclosure or misuse of confidential information.
  • Injunction: A court order requiring the receiving party to cease any further disclosure or use of confidential information.
  • Remedies: Legal actions or damages that can be pursued by the disclosing party in case of an NDA breach.
  • Intellectual Property: Intangible creations of the mind, such as inventions, designs, or artistic works, which can be protected under the NDA.
  • Indemnification: The act of compensating the disclosing party for any losses or damages resulting from a breach of the NDA by the receiving party.
  • Non-Solicitation: A provision in the NDA that prevents the receiving party from poaching or soliciting employees, clients, or contractors of the disclosing party.
  • Non-Compete: A clause in the NDA that restricts the receiving party from engaging in competing activities with the disclosing party during or after the agreement's term.
  • Confidentiality Obligations: The duties and responsibilities of the receiving party to protect and maintain the confidentiality of the disclosed information.
  • Trade Secret: Confidential information that provides a competitive advantage to the disclosing party and is kept secret to maintain that advantage.
  • Legal Recourse: The available legal actions or remedies that can be pursued by the disclosing party in the event of a breach of the NDA.
  • Indemnify: To compensate or reimburse the disclosing party for any losses or damages resulting from a breach of the NDA.
  • Non-Disclosure Clause: A specific provision in the NDA that outlines the obligation of the receiving party not to disclose the confidential information to unauthorized parties.

How Can Indy Help?

Indy is a powerful tool that offers a wide range of ready-made contract templates. Check Indy's website and log into the app if you are looking for free Non-Disclosure Agreement templates. 

In the main menu, you can find a Contracts tool. Click the green "New Contract" button and select the Non-Disclosure Agreement form. You can adjust the agreement or simply add your personal information and send it off for easy signing with e-signatures.

Indy makes it easy to keep your company secrets safe. Get started today for free!


Non-Disclosure Agreements are powerful tools that provide legal protection for sensitive information. By using NDAs effectively, businesses can foster trust, maintain their competitive edge, and confidently engage in collaborations and negotiations without compromising their valuable secrets. When it comes to protecting your intellectual property and confidential information, a Non-Disclosure Agreement can be your strongest ally in the pursuit of success in today's competitive business landscape.

Ready to draft a Non-Disclosure Agreement? Indy has everything you need to keep your private information protected. Sign up for free and create an NDA in just minutes! 

Get started today!

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