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NDA — Acme Corp.md

redline-comments.md

damages-scenarios.md

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Acme-Globex NDA

damages-scenarios.md

mutual-nda-draft.md

NDA — Acme Corp.md

Mutual Non-Disclosure Agreement

1. Purpose

2. Definition of Confidential Information

3. Obligations of the Receiving Party

3.1 Standard of Care

3.2 Permitted Use

3.3 Disclosure to Representatives

4. Exclusions

5. Compelled Disclosure

6. Non-Competition

7. Non-Solicitation

8. Liability and Indemnification

8.1 Breach of Confidentiality

8.2 No Limitation of Liability

8.3 Consequential Damages

9. No Obligation to Contract

9.1 Preliminary Nature

9.2 No Representations

10. Return of Confidential Information

11. Term and Termination

12. Governing Law and Venue

13. Miscellaneous

redline-comments.md

signature-tracker.md

11. Term and Termination

This Agreement shall commence on the Effective Date and shall continue for an initial term of two (2) years, automatically renewing for successive one-year terms unless either Party provides written notice of non-renewal at least thirty (30) days prior to the end of the then-current term.

Notwithstanding termination, the confidentiality obligations set forth herein shall survive for a period of five (5) years from the date of disclosure of each item of Confidential Information, except that obligations with respect to trade secrets shall continue for as long as such information remains a trade secret under applicable law.

12. Governing Law and Venue

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to its conflict of laws principles. Any dispute arising out of or related to this Agreement shall be brought exclusively in the state or federal courts located in Wilmington, Delaware, and each Party consents to the personal jurisdiction of such courts.

13. Miscellaneous

Entire Agreement. This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous agreements, whether written or oral.

Amendments. No modification of this Agreement shall be effective unless in writing and signed by both Parties.

Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

2 1 Assessments

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Risk Assessment 17:03

Risk

Mutual NDA with two high-risk clauses and one operational risk.

Found 3 issues:

Section 6 adds a 12-month non-compete, unusual for an NDA.
Section 8.2 leaves liability for confidentiality breaches uncapped.
Section 11 auto-renews; a missed 30-day notice binds both Parties for another year.

3 highlights applied Jump to First Issue

What's the renewal mechanism on this NDA?

Section 11, Term and Termination - the agreement runs an initial 2-year term, then auto-renews for successive one-year periods unless either Party gives 30 days' written notice of non-renewal before the current term ends.

Auto-renewal increases lock-in risk if you miss the notice window. Worth flagging.

Suggested fixes

Three drop-in rewrites, best first. Pick the one that fits - nothing changes until you choose.

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6. Non-Competition

During the term of this Agreement and for a period of twelve (12) months thereafter, the Receiving Party agrees not to directly or indirectly engage in, own, manage, operate, or control any business that competes with the Disclosing Party in the field of the Purpose, within the geographic territory in which the Disclosing Party conducts business.

8.2 No Limitation of Liability

Notwithstanding any other provision of this Agreement or any related agreement between the Parties, neither Party's liability for breaches of confidentiality, misappropriation of intellectual property, or willful misconduct shall be limited in any way, and each Party's aggregate liability for such matters shall be uncapped.

11. Term and Termination

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8.2 No Limitation of Liability

8.3 Consequential Damages

Except as set forth in Section 8.2, neither Party shall be liable to the other for any indirect, incidental, consequential, special, or punitive damages arising out of or related to this Agreement.

Where does the liability cap stand after the Globex redline?

Today there is no cap. Section 8.2 leaves liability for confidentiality breaches uncapped on both sides.

Globex wants a cap at USD 500,000 except for wilful breach (redline-comments.md, Section 8.2). Your draft response pushes back and counters at USD 2,000,000, or no cap for a breach of Section 3.

Open point in damages-scenarios.md: the cap is silent on per-breach versus aggregate.

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8.2 No Limitation of Liability

Each Party's aggregate liability under this Agreement shall not exceed USD 2,000,000, except that no limitation shall apply to a breach of Section 3 or to wilful misconduct.

8.3 Consequential Damages

Except as set forth in Section 8.2, neither Party shall be liable to the other for any indirect, incidental, consequential, special, or punitive damages arising out of or related to this Agreement.

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Extract key dates 17:08

Effective Date January 15, 2026
Initial term 2 years from the Effective Date (Section 11)
Non-renewal notice 30 days before the end of the term (Section 11)
Confidentiality survives 5 years from each disclosure (Section 11)
Non-compete and non-solicit 12 months after the term (Sections 6 and 7)

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$cap = 500000

$actual_loss = 1240000

$legal_fees = 85000

Exposure

$recovery_capped = min($actual_loss, $cap) 500,000

$total_wilful = $recovery_wilful + $interest 1,386,833

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how much could we owe?

Semantic results (3)
Delta between the two readings of §8.2 is $total_wilful - $recovery_capped. damages-scenarios.md › Exposure
each Party's aggregate liability for such matters shall be uncapped NDA — Acme Corp.md › 8.2 No Limitation of Liability
a USD 500k cap leaves us exposed on the source-code disclosure scenario redline-comments.md › 8.2 No Limitation of Liability

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