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NDA — Confidentiality Agreement, What to Watch Out For

When an NDA Is Needed

A Non-Disclosure Agreement is the standard document preceding business negotiations, due diligence, and exchange of commercial information. Without an NDA, disclosing sensitive data may have no legal consequences.

Unilateral vs. Mutual NDA

A unilateral NDA protects the disclosing party. A mutual NDA covers both parties — standard in business partner negotiations.

Key Elements of an NDA

  • Definition of confidential information — general definition + examples + explicit exclusions
  • Permitted purposes of use — e.g., solely for evaluating cooperation
  • Duration — typically 2-5 years, for trade secrets — indefinitely
  • Circle of permitted persons — employees, advisors, subcontractors
  • Return/destruction obligation after cooperation ends

Contractual Penalty in NDAs

Without a penalty, the injured party must prove the amount of damage — extremely difficult with information leaks. A penalty (PLN 50,000-500,000 per breach) shifts the burden of proof.

Exclusions from Confidentiality

Publicly available information, known before disclosure, independently obtained, disclosed pursuant to legal obligation.

Most Common Mistakes

Definition covering "all information" without exceptions (unenforceable). No penalty. No time limit. No survival clause. No jurisdiction clause in cross-border relationships.

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