New York · Commercial & IP

New York Mutual Non-Disclosure Agreement

New York protects trade secrets through court-made common law, so the written agreement carries much of the load. Its courts will also enforce a clause choosing New York law for a large commercial deal even when the parties have no other tie to the state. An NDA signed with an individual worker must leave room for the disclosures New York statutes protect.

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What New York law does to this document

The rules that change how a Mutual Non-Disclosure Agreement should be written and signed in New York, with the source for each.

Trade secrets are defined by case law

New York's highest court decides trade secret claims under common law. It has said there is no generally accepted definition of a trade secret and has relied on the one in section 757 of the Restatement of Torts, comment b. A clear contractual definition of confidential information therefore matters, because the agreement can protect material that might not meet the common-law test.

Ashland Management Inc. v. Janien, 82 N.Y.2d 395 (1993)

Damages follow the owner's loss

In 2018 the Court of Appeals held that a plaintiff suing for trade secret misappropriation under New York law cannot measure damages by the development costs the defendant avoided. Recovery is tied to what the owner lost. That makes the injunction clause in an NDA more valuable than a damages claim that may be hard to prove.

E.J. Brooks Co. v. Cambridge Security Seals, 31 N.Y.3d 441 (2018)

Choice of New York law and forum

Parties to a contract covering at least $250,000 in the aggregate may choose New York law whether or not the contract bears a reasonable relation to the state. If the transaction covers at least $1,000,000 and the parties also submit to New York jurisdiction, an action may be brought in the New York courts against an out-of-state party. The choice-of-law statute does not reach contracts for labor or personal services or transactions for personal, family or household services.

N.Y. Gen. Oblig. Law §§ 5-1401, 5-1402

Multi-year terms must be in writing

An agreement that by its terms cannot be performed within one year is void unless it is in writing and signed by the party to be charged. Most NDAs run longer than a year, so an oral understanding will not do. An electronic signature has the same validity and effect as one made by hand.

N.Y. Gen. Oblig. Law § 5-701(a)(1); N.Y. State Tech. Law § 304(2)

NDAs with workers need a carve-out notice

When the other party is an employee, a potential employee or an independent contractor, a clause that prevents disclosure of facts related to a future discrimination claim is void unless it gives a specific notice. The notice must say the person may still speak with law enforcement, the EEOC, the State Division of Human Rights, the Attorney General, a local human rights commission or the person's own attorney. This applies to contracts entered into on or after January 1, 2020.

N.Y. Gen. Oblig. Law § 5-336(2)

Six years to sue on the contract

An action on a contractual obligation must be started within six years. A breach of the confidentiality promise is a contract claim, separate from any trade secret claim the owner may also have.

N.Y. C.P.L.R. 213(2)

Where people go wrong in New York

  • Assuming a New York choice-of-law clause is guaranteed to hold when the deal is worth less than the $250,000 floor in General Obligations Law § 5-1401.
  • Using the generator's business-to-business NDA with a job candidate or contractor: it does not contain the agency-disclosure notice that General Obligations Law § 5-336(2) requires in contracts with employees, potential employees and independent contractors, so the notice has to be added.
  • Leaving the definition of confidential information vague and counting on trade secret law, which in New York is common law with a damages measure limited to the owner's own losses.

How the generator works

Protect confidential information in both directions before a partnership, deal, or hire conversation. Answer a short interview and the draft assembles as you go, with New York already set as the governing state. Download it as PDF or Word. No fee. No account.

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Frequently asked

About the Mutual Non-Disclosure Agreement under New York law.
Has New York adopted a trade secrets statute? +
New York courts decide trade secret claims under common law. The Court of Appeals looks to the definition in section 757 of the Restatement of Torts, as it did in Ashland Management Inc. v. Janien. The federal Defend Trade Secrets Act, 18 U.S.C. § 1836, is available alongside the state claim.
Can two out-of-state companies choose New York law for their NDA? +
Yes, and General Obligations Law § 5-1401 makes that choice enforceable without any other New York connection when the contract covers at least $250,000. For access to the New York courts against an out-of-state party, § 5-1402 sets a $1,000,000 floor and requires a New York choice of law and a submission to New York jurisdiction. An NDA rarely states a dollar value, so parties with no New York tie should not assume the statutes apply.
Is an electronically signed NDA valid in New York? +
Yes. State Technology Law § 304(2) gives an electronic signature the same validity and effect as a signature affixed by hand, unless another law specifically provides otherwise. The writing requirement in General Obligations Law § 5-701 still applies to an NDA that runs longer than one year.
Can an attorney finish my New York Mutual Non-Disclosure Agreement? +
Book a planning call. Hart David Carson LLP is an Illinois firm. For a document governed by New York law, the firm coordinates review with counsel admitted in New York. Any fee and scope are confirmed after a conflicts check, before work begins.

Sources checked November 2026 · General information about New York law, not legal advice · Laws change and city or county rules can differ · Every generated draft is a draft · Attorney advertising

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