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