Use Case · Confidentiality

Draft an NDA in Word in under 3 minutes

Mutual or one-way. Jurisdiction-aware. With a built-in playbook that catches missing carve-outs, weak definitions, and survival-clause gaps before you send it.

Quick Answer

LexDraft generates a complete mutual or one-way NDA in Microsoft Word in 90 seconds — type the parties, jurisdiction, term, and permitted purpose, and a 1,200-1,800 word draft appears with a clean structure, tracked-changes ready. The built-in Mutual NDA playbook catches the four most-missed clauses (definition scope, survival, residuals carve-out, securities-law exception) during review.

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What LexDraft does for NDAs

1. Generates the first draft from a one-line prompt

"Mutual NDA between Acme Corp (Delaware) and CounterParty Inc (California), 3-year term, for evaluating a potential commercial partnership." That's the entire input. LexDraft fills in jurisdiction-appropriate governing law, venue, the standard 7-clause structure (recitals → definitions → obligations → exceptions → term → remedies → general), and assembly-line boilerplate.

2. Applies the Mutual NDA playbook on review

The built-in Mutual NDA playbook adds 4 attorney-authored rules to the AI Review pass:

  • Is the term of confidentiality reasonable (typically 2-5 years)?
  • Is "Confidential Information" defined to include both written and orally-disclosed information?
  • Is there an explicit survival clause for confidentiality obligations?
  • Does the agreement allow disclosure pursuant to court order, regulatory inquiry, or SEC filing requirement?

3. Quick checks catch the small stuff humans miss

Defined-term drift is the #1 NDA review error: "Confidential Information" gets defined, but then halfway through the document someone writes "confidential information" or "Confidential Materials". LexDraft's defined-term Quick Check (no AI, runs in 8ms) flags every inconsistent usage with a one-click "📍 Take me there" jump to the offending paragraph.

4. Tracks jurisdiction differences automatically

Massachusetts, California, and Delaware all enforce NDAs differently on residuals, employee solicitation, and non-disparagement carve-outs. LexDraft applies the right defaults based on the jurisdiction you pick; cross-jurisdictional NDAs (e.g., Delaware governing law, California venue) get flagged for conflict review.

See it in action

LexDraft running review against the sample mutual NDA — the surgical edits surface as tracked-change suggestions in the sidebar.

LexDraft surgical-edit suggestions for an NDA
Surgical red-line suggestions for an NDA — accept as a tracked Word change with one click.

Common NDA clauses LexDraft handles

Definition of Confidential Information

Written, oral, electronic, and tangible forms — with the standard 4 exceptions (publicly known, independently developed, lawfully obtained from third party, already known).

Permitted Purpose

Scoped to the specific commercial discussion. LexDraft fills this from your one-line prompt.

Term + Survival

Default 3-year term with confidentiality obligations surviving for 5 years post-termination. Adjustable in the Assistant tab.

Required Disclosure Exceptions

Court order, subpoena, SEC filing, regulatory inquiry — with notice-and-cooperation language.

Return / Destroy

Materials returned or destroyed at termination, with certification of destruction for sensitive matters.

Injunctive Relief + Remedies

Acknowledgement that damages alone are inadequate, right to seek equitable relief without bond.

NDA FAQs

Can I generate a mutual NDA in LexDraft?

Yes. Pick the Mutual NDA template, answer 4 questions (parties, jurisdiction, term, permitted purpose), and LexDraft produces a complete first draft in Word in about 90 seconds.

Does LexDraft's NDA include a residuals carve-out?

By default, no — residuals carve-outs heavily favor the receiving party and most disclosing parties don't want them. You can add one in 5 seconds via the Assistant tab: "Add a residuals carve-out limited to information unintentionally retained in employees' unaided memory."

How does LexDraft handle securities-law disclosure exceptions?

The Mutual NDA playbook flags missing securities-law disclosure exceptions (SEC filings, court orders, regulatory inquiries) as a HIGH-severity finding during Quick Review. Quick checks also surface inconsistencies in how "Confidential Information" is defined.

Is the LexDraft NDA template free?

Yes. A mutual NDA generates in about 1,200-1,800 words, well inside the free tier's 2,000-words-per-month allowance — so 1 NDA per month is fully free. Heavier users (3-5 NDAs/week) move to Professional at $99/month.

Stop copy-pasting from your last NDA

LexDraft generates the first draft, runs the playbook, catches defined-term drift — and stays inside Microsoft Word.

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