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New Jersey
Customized for New JerseyThis document may be legally binding in New Jersey according to your state specific regulations.
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  • Last reviewed at April 27th

A New Jersey non-disclosure agreement (NDA), or confidential disclosure agreement, is a legal document created with the goal of protecting certain confidential information from unauthorized sharing with the public. 

It is mostly used to protect information about the business's organization and operation, client information, intellectual property, and more.

What is a Trade Secret in New Jersey?

A trade secret in New Jersey is certain sensitive information about the business operation or structure that is considered to be their competitive advantage on the market and is therefore not shared with the general public.

Types of Non-Disclosure Agreements

The two main types of non-disclosure agreement forms are unilateral and mutual NDAs. The difference between these two types is who takes on the responsibility of keeping the shared information confidential.

With the unilateral NDA, such responsibility and obligation are only on one party, while the mutual NDA forms such obligations for all parties signing the NDA.

Legal Requirements for New Jersey Non-Disclosure Agreement

This section outlines the legal framework for the New Jersey non-disclosure agreement template:

Mandatory Requirements

  • Statutes: Chapter 56:15

  • Definitions: § 56:15-2

  • Statute of Limitation: An action for misappropriation shall be brought within three years after the misappropriation is discovered. (§ 56:15-8)

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

In New Jersey, the non-disclosure agreement can be used in various situations, depending on what type of information should be protected.

Therefore, we have different reasons why the parties chose to issue an NDA:

NDA Uses and Scopes

  • Protection of business information: Parties use it to protect business and trade secrets shared during their interaction with business partners, suppliers, vendors, and other third parties.

  • Protection of intellectual property: Parties can use the NDA to protect their creative work, software, inventions, or other types of intellectual property other parties have access to during the interaction with the party issuing the NDA.

  • Protection of information during employment: The NDA is often signed along with the employment agreement. Its main goal is to protect the sensitive information employees get access to during their employment.

  • Protection of information after the litigation: Used by parties that want to keep the details of their litigation settlement agreement confidential.

New Jersey Non-Disclosure Agreement FAQ

  • Yes, the NDA is a legally binding document in New Jersey. It becomes legally binding the moment all the parties take on the confidentiality obligation to sign it.

  • No, the New Jersey NDA doesn’t need to be signed in front of a witness to be valid. However, if the parties want to provide an additional level of authentication for the document, they can include the witness signature.

  • You can always decline to sign the NDA in New Jersey. However, you should consider all the aspects of that action in terms of your relationship with the party issuing the NDA before declining to sign the NDA.

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