ClauseCheck

Guides

NDA review: what to check before you sign

NDAs look standard, and most are. The ones that aren't hide a non-compete, a penalty or a confidentiality duty that never ends. Here is how to spot them.

Five things that make an NDA one-sided

  1. Everything counts as confidential, even information that is public or that you already knew. Look for the standard exclusions.
  2. It lasts forever. Two to five years is common for business information. Trade secrets can be longer.
  3. A hidden non-compete or non-solicit that has nothing to do with confidentiality.
  4. Fixed penalties ("€50,000 per breach") on top of real damages.
  5. Only you are bound when both sides share information.

Questions

Is it normal for an NDA to include a non-compete?

No. A non-disclosure agreement should be about confidential information. A non-compete inside an NDA is worth questioning.