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Non-Disclosure Agreement
"Require an NDA for a compliance project involving two parties, valid for 3 years, covering all proprietary information shared during collaboration, with a penalty clause of $50,000 for breaches."
What is a Non-Disclosure Agreement?
A Non-Disclosure Agreement protects confidential business information by creating a legal duty to keep specific details private. Companies and professionals in the Philippines use these contracts when sharing sensitive data like trade secrets, client lists, or upcoming product launches with employees, contractors, or business partners.
Under Philippine contract law, NDAs give businesses a clear way to pursue damages if someone leaks protected information. The agreement must specify what information is confidential, how long secrecy must be maintained, and what happens if the agreement is broken. Local courts will enforce these agreements as long as they're reasonable in scope and don't unfairly restrict someone's ability to work in their field.
When should you use a Non-Disclosure Agreement?
Use a Non-Disclosure Agreement before sharing sensitive business information with others, especially when starting new partnerships or hiring employees in the Philippines. This includes situations where you need to discuss trade secrets, client data, marketing plans, or proprietary technology with potential investors, contractors, or staff members.
The timing matters - have the NDA signed before any confidential discussions begin. This protects your business interests under Philippine law and creates clear documentation if information gets leaked. Key moments to introduce an NDA include job interviews for sensitive positions, meetings with potential business partners, vendor negotiations, and discussions about mergers or acquisitions.
What are the different types of Non-Disclosure Agreement?
- NDA And Confidentiality Agreement: Standard two-way agreement for mutual information sharing between business partners
- Business Confidentiality Agreement: Comprehensive protection for corporate trade secrets and strategic information
- NDA For Suppliers: Specialized agreement for vendor relationships and supply chain protection
- Confidentiality Agreement Statement: Simplified one-way agreement often used with employees or contractors
- NDA Settlement: Specific agreement for maintaining confidentiality in dispute resolutions
Who should typically use a Non-Disclosure Agreement?
- Business Owners: Initiate and enforce Non-Disclosure Agreements to protect company secrets, intellectual property, and sensitive business information
- Employees: Sign NDAs as part of their employment contracts, agreeing to protect company information during and after employment
- Investors: Review confidential financial data and business plans under NDA protection before making investment decisions
- Contractors and Vendors: Access proprietary information needed to provide services while maintaining confidentiality
- Legal Counsel: Draft, review, and customize NDAs to ensure enforceability under Philippine law and protect client interests
How do you write a Non-Disclosure Agreement?
- Identify Parties: Gather complete legal names and addresses of all individuals or companies who will sign the NDA
- Define Scope: List specific confidential information to be protected, including trade secrets, client data, or business plans
- Set Duration: Determine how long the confidentiality obligations will last under Philippine law
- Specify Restrictions: Detail permitted uses of confidential information and clear limits on disclosure
- Add Consequences: Include specific remedies and penalties for breach of confidentiality
- Review Details: Double-check all information using our platform's automated validation to ensure legal compliance
What should be included in a Non-Disclosure Agreement?
- Party Details: Full legal names, addresses, and authorized signatories of all involved parties
- Definition Section: Clear description of what constitutes confidential information under Philippine law
- Scope Clause: Specific permitted uses and restrictions on confidential information sharing
- Time Period: Clear start date and duration of confidentiality obligations
- Return of Materials: Requirements for handling or destroying confidential information
- Breach Remedies: Specific consequences and legal recourse for violations
- Governing Law: Statement that Philippine law governs the agreement
- Signature Block: Space for dated signatures with witness provisions
What's the difference between a Non-Disclosure Agreement and a Non-Compete Agreement?
While Non-Disclosure Agreements focus on protecting confidential information, a Non-Compete Agreement serves a different but related purpose in Philippine business law. Let's explore their key differences:
- Primary Purpose: NDAs prevent the sharing of confidential information, while non-compete agreements restrict someone from working with competitors or starting competing businesses
- Duration and Scope: NDAs typically last indefinitely for trade secrets, while non-compete agreements must have reasonable time limits under Philippine law
- Legal Enforcement: NDAs are broadly enforceable when protecting legitimate business interests, whereas non-compete agreements face stricter scrutiny and must be narrowly tailored
- Common Usage: NDAs are used with various parties (employees, vendors, partners), while non-compete agreements are mainly used with key employees or business sellers
- Geographic Reach: NDAs usually have unlimited geographic scope, but non-compete agreements must specify reasonable territorial limits
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