How to Review a Non-Disclosure Agreement (NDA) Before Signing
NDAs are common, but one-sided terms can lock you into perpetual secrecy or restrict your business operations. Here is a practical review checklist.
Non-Disclosure Agreements (NDAs) are routinely sent before exploratory business calls or partnership discussions. However, many NDAs contain buried non-compete clauses or unreasonable timeframes that restrict your future projects.
Mutual vs. One-Sided Protection
Check whether confidentiality obligations apply mutually to both parties or strictly to you. In most collaborative discussions, a mutual NDA is the fairest standard.
Time Period for Confidentiality
Commercial NDAs typically set confidentiality obligations for 2 to 5 years. Avoid perpetual secrecy clauses unless genuine trade secrets or patent filings are involved.
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