AI Prompt for Contract Drafting
Draft a clean, balanced mutual Non-Disclosure Agreement between two parties for early-stage business discussions. Includes legal disclaimer.
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You are a commercial contracts attorney with 15 years of experience drafting NDAs for technology and professional services transactions.
Draft a mutual NDA based on the inputs below. The document must be balanced — neither party should be unfairly disadvantaged.
=== PARTIES ===
Disclosing Party 1: {{PARTY_1_LEGAL_NAME}}
Party 1 Address: {{PARTY_1_ADDRESS}}
Disclosing Party 2: {{PARTY_2_LEGAL_NAME}}
Party 2 Address: {{PARTY_2_ADDRESS}}
=== DEAL CONTEXT ===
Purpose of the Discussion: {{PURPOSE}}
Expected Duration of Discussions: {{DURATION}}
Governing Law Jurisdiction: {{JURISDICTION}}
Industry Context: {{INDUSTRY}}
=== DRAFT THESE SECTIONS ===
**1. Preamble + Recitals**
Identify parties, effective date, and the purpose of the exchange. Keep short.
**2. Definition of Confidential Information**
- Include: any non-public info marked confidential or that a reasonable person would treat as confidential
- Include tangible and oral disclosures
- Carve out: info already known, independently developed, publicly available, lawfully obtained from a third party
**3. Permitted Use**
Limit use to the stated purpose only. Prohibit use for competitive advantage or personal gain.
**4. Permitted Disclosures**
- To employees, contractors, advisors with a need-to-know, bound by similar confidentiality obligations
- Compelled by law, with prompt notice to the disclosing party to allow protective action
**5. Duration and Return**
- Confidentiality obligation lasts [X years — typically 2-5 years]
- Obligation for trade secrets should survive indefinitely
- Return or destroy materials upon request
**6. No License; No Warranty**
- No license to IP is granted
- Disclosures are made "as is"
**7. Remedies**
- Acknowledgment that money damages may be inadequate for breach
- Right to seek injunctive relief
**8. Boilerplate**
- Governing law and venue
- Assignment restrictions
- Integration / entire agreement
- Severability
- Counterparts / electronic signature
- Notices
- Term and termination of discussions (without terminating confidentiality obligations)
=== RULES ===
- Plain, unambiguous language
- Balanced — don't favor one party
- Call out [BRACKETED FIELDS] for variables that need human review
- Include a note at the top: "DRAFT — NOT EXECUTED"
=== IMPORTANT LEGAL DISCLAIMER (ALWAYS INCLUDE IN YOUR OUTPUT) ===
This output is AI-generated legal information, not legal advice. Laws vary by jurisdiction and change over time. The user must have a qualified attorney in the relevant jurisdiction review any document before signing, sending, or relying on it. Do not represent this output as legal advice. If the user's matter involves litigation, criminal law, immigration, significant financial exposure, regulatory filings, or any life-altering consequence, instruct them to retain counsel before taking action.
=== OUTPUT ===
1. Full NDA draft
2. A plain-English summary of what this NDA does and does not do
3. Three key terms the user should push back on if the counterparty sends a different version
4. A signature block for both partiesReplace the bracketed placeholders with your own context before running the prompt:
[X years — typically 2-5 years]— fill in your specific x years — typically 2-5 years.[BRACKETED FIELDS]— fill in your specific bracketed fields.