Whenever you share sensitive business information — with an employee, a contractor, a potential investor, or a partner — you risk that information being leaked or used against you. A Non-Disclosure Agreement (NDA) is the simplest, most cost-effective way to protect it. This guide explains what an NDA is, when to use one, what it should contain, and whether NDAs are enforceable in South Africa.
What is a Non-Disclosure Agreement?
An NDA (also called a confidentiality agreement) is a legally binding contract in which one or more parties agree to keep certain information confidential and not to use or disclose it without permission. It creates a clear legal obligation — and a remedy — if the information is misused.
When should you use an NDA?
- Hiring employees or contractors who will access client data, pricing, or systems.
- Pitching to investors or sharing a business plan.
- Exploring a partnership, joint venture, or supplier relationship.
- Outsourcing development, design, or manufacturing.
- Selling a business, where the buyer needs to see your financials.
Unilateral vs mutual NDAs
A unilateral (one-way) NDA is used when only one party is disclosing confidential information — for example, an employer to an employee. A mutual (two-way) NDA is used when both parties will share sensitive information, such as two companies exploring a joint venture. Choosing the right type matters, because it affects who is bound by the confidentiality obligations.
Key clauses a good NDA should include
- Definition of confidential information — precisely what is protected.
- Obligations of the receiving party — how the information may and may not be used.
- Exclusions — information already public or independently known.
- Duration — how long the confidentiality obligation lasts.
- Return or destruction of information when the relationship ends.
- Remedies — what happens if the NDA is breached.
Are NDAs enforceable in South Africa?
Yes. South African courts enforce NDAs, provided the agreement is reasonable and clearly drafted. The confidentiality obligations must be defined with enough precision, and the restrictions must be reasonable in scope and duration. A vague or overly broad NDA is far harder to enforce — which is exactly why it pays to have one drafted properly by an attorney rather than pulled from a free template.
What does an NDA cost?
At Bekin Consulting, an NDA drafted by an admitted attorney starts from R950 — a small price to protect information that could be worth far more to your business.
Need an NDA drafted or reviewed?
Drafted by an admitted attorney — from R950.
See Our Legal Services →Frequently Asked Questions
Yes. South African courts enforce NDAs as long as the agreement is reasonable, clearly drafted, and the confidential information is properly defined. Vague or overly broad NDAs are much harder to enforce.
A unilateral NDA protects information disclosed by only one party (for example, an employer to an employee). A mutual NDA is used when both parties share confidential information, such as two businesses exploring a partnership.
The duration depends on the information. Many NDAs run for two to five years, but trade secrets can be protected indefinitely. The right term is set based on your specific situation.
Bekin Consulting drafts NDAs from R950, prepared by an admitted attorney.
Bekin Consulting drafts NDAs, contracts, and a full range of business legal documents — by an admitted attorney, at fixed fees.
