Download Alabama Non-Disclosure Agreement Template [PDF]

The Alabama non-disclosure agreement (Alabama NDA) is a legal document signed between two parties where they take on the obligation to keep confidential the information shared between them. This information often includes business or trade secrets or other confidential information.

What is a Trade Secret in Alabama?

A trade secret is a certain practice, solution, or piece of information used inside a certain company that is not generally known outside of that organization.

Types of Non-Disclosure Agreements

There are two types of non-disclosure agreement forms, and the main distinction is who becomes obliged to keep certain information confidential. Based on that, we differentiate between unilateral and mutual NDAs.

A unilateral NDA is a document that obliges only one party to keep the shared information confidential, while a mutual NDA provides such an obligation for both parties. The mutual NDA, or confidential disclosure agreement, is typical for joint ventures where both entities present certain information to the other party that is not known to the general public.

Legal Requirements for Alabama Non-Disclosure Agreement

Here, you can see the main legal framework for the non-disclosure agreement template in Alabama:

Mandatory Requirements

Statutes: § 8-27-1 to 8-27-6
Definitions: § 8-27-2
Statute of Limitation: The plaintiff has two years to bring a case against a defendant from the moment they discover the misappropriation. (§ 8-27-5)

What Can a Non-Disclosure Agreement Be Used For in Alabama?

The Alabama non-disclosure agreement is typically used in the following situations:

NDA Uses and Scopes

During business negotiations: This can include negotiations with business partners, contractors, employees, and others. The company can use it to protect certain trade secrets and proprietary information during mergers and acquisitions, business transactions, and more.
Confidentiality with employees: The company will usually require the employee to sign the NDA right after signing the employment agreement to make sure they keep confidential any information they come across during their employment with the company.
Protection of customer information: The company that possesses sensitive data about its customers will sign an NDA with any employee or third party that handles this information for the company.
Intellectual property protection: Individuals and businesses often use NDAs to protect their software, patents, inventions, creative works, or other kinds of intellectual property.

Alabama Non-Disclosure Agreement FAQ

The NDA is a legally binding document. It becomes legally binding the moment parties sign it, and the party that violates their obligations under the NDA can face legal consequences.
The NDA doesn’t need to be signed in front of a witness in Alabama, according to state law. However, the parties might consider including the witness acknowledgment of the NDA in order to secure the authenticity of the document.
Yes, you can decline an NDA in Alabama. However, bear in mind that declining to sign an NDA may prevent you from getting employed in a company that requires you to sign an NDA, or it can prevent you from participating in certain business negotiations, and more.