--- name: review-nda-quick-check-sboghossian title: NDA Quick Check (5-Minute Review) description: Use when a fast (5-minute) NDA review is needed to assess whether an NDA is safe to sign, needs negotiation, or should be rejected as drafted. Runs a 10-point checklist covering mutual vs unilateral structure, Confidential Information definition, permitted recipients, term, return/destruction, no-license language, remedies, governing law, jurisdiction-specific execution requirements, and boilerplate. Produces a traffic-light rating and links to counter-proposal drafting. author: sboghossian author_url: https://github.com/sboghossian/mini-claude-for-legal/tree/main/skills/review/review-nda-quick-check license: MIT version: 0.1.0 execution_mode: open jurisdiction: general practice: contracts language: en --- # NDA Quick Check (5-Minute Review) ## When to use this Use when: - A counterparty has sent an NDA for signature and you need a rapid assessment of whether it is safe to sign - A client asks "is this NDA okay?" — you need to give a quick, structured answer - You have 5–10 minutes before a meeting to flag the biggest issues - You want a first-pass before running a deeper review This skill delivers a go / negotiate / reject verdict plus a prioritized list of issues. For a more thorough review, escalate to [[review-unusual-terms-detector]] and [[review-missing-clauses]]. ## Inputs | Input | Why it matters | Default | |---|---|---| | NDA text | Full document | Required | | Party's role | Disclosing party, receiving party, or both? | Ask if unclear | | Jurisdiction | Affects enforceability of term, scope, and execution requirements | Infer from governing-law clause; ask if absent | | Purpose | Why are the parties entering into the NDA? (M&A discussions, vendor evaluation, employment) | Ask if not obvious from document | ## 10-Point Quick Checklist Run through each item; output a Yes / No / Issue flag: ### 1. Mutual or Unilateral? - Confirm whether the NDA is mutual (both parties can disclose and receive) or unilateral (one party only discloses) - Does it match what the user expects? A counterparty sending a one-sided NDA when both parties will be sharing information is an immediate flag - For M&A preliminary discussions: mutual is standard - For vendor/supplier evaluations where only the vendor shares proprietary information: unilateral from vendor is acceptable ### 2. Definition of Confidential Information A complete definition: - Covers written, electronic, oral, and visual disclosures - May include a marking requirement (written information must be marked "Confidential") — note: an oral marking-based definition is problematic if oral disclosures are expected but cannot be marked - Contains the **four standard exclusions**: 1. Information already in the public domain (not through breach) 2. Information the Receiving Party independently developed without reference to Confidential Information 3. Information lawfully received from a third party without restriction 4. Information the Receiving Party already knew before disclosure (must be documented) Flag: if any of the four exclusions is absent — the definition is overbroad and the Receiving Party may be restricted from using information it legitimately owns or developed independently. ### 3. Permitted Recipients A well-drafted clause: - Limits disclosure to employees, officers, directors, and professional advisors who have a need to know - Requires Receiving Party to impose equivalent confidentiality obligations on those recipients (flow-down) - Treats any breach by a recipient as a breach by the Receiving Party Flag: permitted recipients too broad (e.g., "group companies" without need-to-know limitation); no flow-down obligation; no liability for recipients' breaches. ### 4. Term — Duration of Obligations Market ranges: - Commercial NDAs (general vendor evaluation): 2–3 years - M&A preliminary discussions: 2–5 years (longer survival appropriate) - Technology / trade secrets: 5–7 years or indefinite for specific trade secret categories (different rules by jurisdiction) - Employment: post-termination confidentiality is often longer or indefinite but must be proportionate Flag: perpetual obligation for all information (including general business information) — may be unenforceable in some jurisdictions and is commercially unusual. Perpetual treatment is appropriate only for genuine trade secrets, defined specifically. ### 5. Return / Destruction Obligation On expiry of the NDA, or upon request by the Disclosing Party: - All Confidential Information and copies must be returned or certifiably destroyed - Certification of destruction is standard (a written statement from a senior officer) - Exception: automatically-archived copies (backup systems) and legally required retention are typically excluded from destruction Flag: no return/destruction obligation — allows Receiving Party to retain Confidential Information indefinitely. This is also a data protection compliance issue where personal data is involved. ### 6. No License / No IP Transfer Language The NDA should expressly state: - Disclosure of Confidential Information does not grant any license, right, or title to any IP - No obligation to disclose anything is created by the NDA itself (the NDA merely governs what happens if information is disclosed) - No obligation to proceed with any transaction is created Flag: absence of this language creates an argument that the disclosure implied a license — particularly relevant for technology NDAs where proprietary methods or code are shared. ### 7. Injunctive Relief Standard remedy provision: - The parties acknowledge that monetary damages may be inadequate for breach - Each party is entitled to seek injunctive or other equitable relief without posting bond and without proving actual damages - This is in addition to other remedies, not exclusive Flag: NDA limited to damages only — makes enforcement effectively impossible given the difficulty of proving loss from a disclosure. In many jurisdictions, injunctions are obtainable even without this clause, but the express language removes disputes. ### 8. Governing Law and Forum Selection Check: - Is governing law specified? (If not — see [[review-missing-clauses]]) - Does the chosen law / forum favor the user's party? - For cross-border NDAs: check whether courts of the chosen jurisdiction will enforce the NDA as written; some jurisdictions have limitations on confidentiality enforcement terms **MENA-specific flags**: - KSA: if confidentiality disputes arise, specifying SCCA arbitration is faster than general courts; court enforcement of injunctions is possible but slower - UAE: DIFC Courts have efficient injunction procedures; specifying DIFC Courts for enforcement adds value if either party has DIFC assets - Lebanon: enforcement of foreign-court judgments is possible under reciprocity but domestic courts are preferred for speed ### 9. Jurisdiction-Specific Execution Requirements Before signing, verify local form requirements: | Jurisdiction | Requirement | |---|---| | LB | Some commercial documents benefit from notarization (Tawqi3i) for enforceability in local courts; cross-border NDAs with foreign parties may need Apostille | | UAE | Commercial documents executed outside UAE may need notarization + Apostille + MOFA attestation for use in UAE courts or RERA filings | | KSA | Notarization (توثيق) at a Saudi notary public (كاتب عدل) required for certain categories; English-language NDAs may need a certified Arabic translation | | US | No general notarization requirement for commercial contracts; e-signatures under ESIGN Act are valid | | DIFC / ADGM | E-signatures valid; no notarization requirement | ### 10. Boilerplate Completeness Confirm the following are present: - **Entire agreement**: this NDA supersedes prior discussions on confidentiality (prevents argument that earlier oral NDA had different terms) - **No waiver**: failure to enforce a breach does not waive future breaches - **Severability**: if one clause is void, the rest remain in force - **Notices**: address for formal notices (must match Commercial Registration / official address) - **Amendment**: amendments require written agreement signed by both parties Flag: absent boilerplate is a medium risk item — individually minor; collectively creates enforcement gaps. ## Traffic-Light Output After completing all 10 checks, issue a verdict: | Rating | Criteria | Action | |---|---|---| | Green — Safe to sign | All 10 checks pass; no material issues | Proceed; note any low-priority suggestions | | Yellow — Negotiate | 1–3 items require negotiation; no fatal flaws | Identify top priorities; draft counter-positions | | Red — Reject as drafted | Fundamental structural issue (e.g., no CI definition; perpetual overbroad obligation; no exclusions; wrong party structure) | Return to drafter with marked-up counter-proposal | ## Counter-Proposal Drafting If the verdict is Yellow or Red, offer to: - Produce a marked-up counter-proposal addressing the identified issues (use [[draft-nda-mutual]] or [[draft-nda-unilateral]]) - Prioritize the top 3 items to push on if full counter is not practical ## Common Mistakes in NDA Review - Treating "perpetual" obligation for generic business information as acceptable — it is usually not and may be void - Missing the absence of the fourth exclusion (prior knowledge) — allows the Receiving Party to be bound by information it already knew - Not checking whether the NDA binds affiliates — if the NDA only names the contracting entity, disclosures to the parent company may not be covered - Not checking the definition of "Representatives" or "Permitted Recipients" to ensure professional advisors (lawyers, accountants) are included with appropriate flow-down ## Related Skills - [[review-unusual-terms-detector]] - [[review-missing-clauses]] - [[review-risk-flagging]] - [[draft-nda-mutual]] - [[draft-nda-unilateral]] - [[review-signature-block-validity]]