A key part of most NDAs is a requirement that information is only used for the purpose it is disclosed (and not for any other purpose).

For example, if I disclose you confidential information about my new product so you can provide me consultancy services, you cannot use that information to develop a competing product. This is a different purpose, in breach of the NDA. For this obligation to work in practice, you need to write a specific purpose for each NDA you agree. You’ll need to either add this in the appropriate place in the word document, draft the text into your document generator or choose and review a suggested purpose with a service like Haggle.

The more specific you can make the purpose, the more effective your protection will be. For example, “to negotiate a commercial transaction” might be okay as a generic starting point.  However, you will be much better protected if you can add additional details, like the type of transaction and the product or service to which it relates.  For example, “To negotiate a commercial transaction for the resale of the Haggle contract automation system”.  

If your purpose is not clearly stated, is too broad or too narrow, it is more likely the other side will take longer to respond to your NDA.  They may need to amend that purpose (perhaps in conjunction with their lawyer) which adds unnecessary delay to the NDA process.

See examples of purposes you can include in an NDA and how they show up in the document in our free contract explorer.