Insights for founders · Contracts

How to Draft an NDA Online in Minutes: The 7 Questions to Answer First

There is no such thing as a one-size-fits-all NDA. Our lawyer walks through the seven questions that shape a non-disclosure agreement, shows you the screens you will see in FD AI, and explains the clauses your answers turn into.

Founders Doc·Reviewed by a practising lawyer·14 Oct 2026·10 min read

Seven questions, one NDA. Illustration: Founders Doc

Is there such a thing as a standard non-disclosure agreement? Not really. Two NDAs can look almost identical and still protect very different things, because the right wording depends on who is sharing what, why, and where. Download a free template and you inherit somebody else's answers to those questions.

In the video below, our lawyer drafts a complete NDA with FD AI in under ten minutes and explains each question, and each clause, along the way. This article sets out the same walkthrough in writing, with screenshots of every step, so you can follow along and draft your own as you read.

Watch: our lawyer drafts an NDA with AI in minutes (9:33).

Before you start: what you'll need

You can begin with nothing but a name, and FD AI will leave clear blanks for anything you skip. But you will get a sharper first draft if you have these to hand:

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The seven questions that shape your NDA

FD AI asks these questions one at a time, in plain English, and shows your progress on the right. You can skip anything you are unsure about and come back to it later.

FD AI's NDA screen: the first question asks whether the NDA is mutual or one-way, with a progress panel listing eight steps
FD AI opens with the direction question. The progress panel shows every step, so you always know how far you have to go.

1. Which direction is the information flowing?

Start with the direction. Are you receiving the information, disclosing it, or are both sides sharing (a mutual NDA)? It matters more than it seems, because it decides whose interests the wording should lean towards.

If you are…ChooseWhat you want from the NDA
🔒 Sharing your information onlyOne-way NDA (you disclose)Tight obligations, a broad definition of confidential information, strong remedies.
📥 Receiving someone else's informationOne-way NDA (you receive)Flexibility, clear exceptions, and no promise you cannot keep.
🤝 Both sharingMutual NDABalanced obligations that apply equally to both sides.

And if you are happy for anyone to have the information, you may not need an NDA at all. Read NDA vs Confidentiality Agreement: What is the Difference?

2. Who are the parties?

Next come the parties. Use each party's full legal name, not a brand or trading name, so there is no doubt later about who is bound. A group holding company and its operating subsidiary are different parties, so name the one that will actually receive or share the information.

FD AI asks for each party's name, with an optional box for addresses, registration numbers and signatories
Names are enough to start. Add an address, registration number or signatory in the optional box if you want them in the NDA.

3. What are you working on together?

This question sets the purpose, and the purpose is the boundary. The other side may use your confidential information only for that purpose and nothing else. If you are sharing information to explore a possible acquisition, the recipient cannot use it for anything else, such as learning your competitive secrets.

FD AI asks what the parties are working on together and what kind of information will be shared
Two short boxes: the purpose, and the kinds of information you will share. FD AI turns both into the recitals and the definition of Confidential Information.
PurposeVerdict
"Business discussions"❌ Too vague. Almost any use could fit.
"Reviewing the Q3 pricing sheet on 14 October"❌ Too narrow. Follow-up calls may fall outside it.
"Discussing a possible pilot of Northwind's logistics platform with Harbour Ventures"✅ Specific about the project, flexible enough for the talks around it.

4. What counts as confidential information?

Think about what is protected and what falls outside. It sounds dull, but it stops being dull very quickly when the parties start arguing over whether something was confidential at all. Name the categories that matter to you: product roadmaps, pricing, source code, customer lists, financials. A clear definition now saves a dispute later.

5. How long should confidentiality last?

Two to five years is common, and nothing stops you from asking for longer if the information will stay sensitive. Trade secrets are often protected for as long as they remain secret. FD AI sets a sensible default, so you change only what you need.

FD AI's duration step, with fields for years and months, a Perpetual option, an ownership question and a personal data question
Duration in years or months (or Perpetual), who owns anything created from the information, and whether personal data will be shared, all on one screen.
What you are sharingTypical duration
⏱️ Early, exploratory talks1 to 2 years
💼 Pricing, business plans, deal terms2 to 5 years
🧬 Source code, formulas, trade secretsAs long as the information stays secret

Don't forget personal data. If what you share includes personal data, such as customer records or employee details, it has to be handled properly. The NDA should place additional obligations on the recipient under the data protection law that applies, such as Singapore's Personal Data Protection Act 2012 (PDPA) or the EU's General Data Protection Regulation (GDPR). Many businesses have been caught out here, so it is worth a minute of your time. Answer "Yes" in FD AI and the draft adds data protection obligations for you.

6. Where are you based?

The jurisdiction question decides which country's law governs the NDA and where a dispute would be resolved. Usually the simplest answer is where you are based. FD AI lets you search for any country or state, then choose how disputes are resolved, for example in the courts.

FD AI's law and disputes step, with Singapore selected as the governing law and Courts as the way disputes are resolved
Pick the governing law and how disputes are resolved. The draft follows that jurisdiction's conventions.

7. How comprehensive should the NDA be?

If you are disclosing, you may want a very comprehensive agreement. If you are receiving, you may prefer something shorter and simpler. It also depends on the parties' preferences and how far along the discussions are: a long, detailed NDA can be overkill for a first conversation.

FD AI's comprehensiveness slider from 1 Minimal to 5 Comprehensive, set to 3 Standard, about 1,000 to 1,400 words
A five-step slider sets the level of detail. It changes how much is written, never what is agreed.
Short and simpleComprehensive
Best forFirst meetings, receiving parties, low-risk informationDisclosing parties, valuable IP, larger deals
Reads likeTwo or three pages a busy founder will actually signFull definitions, security rules and remedies
Watch out forGaps if the relationship deepensSlowing down a deal that does not need it

Generating the draft, for your jurisdiction

Once the questions are answered, click Generate draft. A question we often get is whether the NDA is specific to each jurisdiction. It is. Every country has its own rules that affect NDAs, and your answers carry through into the draft, so the clauses and conventions match the country you chose. The core principles of a non-disclosure agreement are the same in most places, which is why the seven questions stay the same.

A finished mutual non-disclosure agreement in FD AI's editor, with the chat on the left, a Download Word button above the document and the progress panel on the right
Your draft opens beside the chat. Edit it on screen, ask FD AI to explain or change a clause, or download it as a Word document.

Anything you skipped is left as a clear blank, and FD AI lists the gaps to fill before the NDA goes out.

What's inside the draft: the key clauses

Your answers become the clauses. Here is what to look for when you read the draft:

ClauseWhat it doesWhy it matters
PurposeThe recipient may use the confidential information solely for the agreed purpose.Stops the information being used for anything else, such as competing with you.
Confidentiality and representativesKeep the information strictly confidential; disclose it only to representatives who need it, such as lawyers, accountants and key staff.Representatives must be bound by the same confidentiality.
Security measuresSets out how the information must be protected, with checks and balances.For example, not leaving it freely available across the company, and making clear who is authorised to use it.
ExceptionsDisclosure required by a court, regulator or government agency, and information that is public, already known or independently developed.Where possible, the disclosing party should be told first.
OwnershipSharing the information transfers no rights in it: no licence and no ownership.Any use stays limited to the agreed purpose.
No warrantyThe disclosing party does not promise the information is accurate or complete.You want this if you are disclosing, so you are not blamed if the information turns out to be imperfect.
Return or destroyWhen the relationship ends, the recipient returns or destroys the information, keeping only what the law requires.Copies do not linger after the deal is over.
RemediesAcknowledges that money alone may not be an adequate remedy.Supports an application to court for an injunction to stop a threatened disclosure.
TermHow long the obligations last, from your answer to question 5.Trade secrets may be protected without a time limit.
Governing law and jurisdictionFollows the country you chose in question 6.Decides which law applies and where disputes go.

Read Can Breaching an NDA Be Expensive?

Five common NDA mistakes to avoid

  • Using a brand name instead of the legal entity. If the wrong company signs, the right one may not be bound.
  • A purpose so broad it means nothing. "Business discussions" lets the recipient argue that almost any use was allowed.
  • Forgetting oral and demo information. If only marked documents are protected, what you said in the meeting may not be.
  • Ignoring personal data. Sharing customer or staff data without data protection obligations can put you on the wrong side of the PDPA or GDPR.
  • Sneaking in a non-compete. It does not belong in an NDA, and it can make the other side walk away from a simple confidentiality deal.

Before you send it: a final checklist

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A word of caution

No document is one hundred per cent perfect. An AI-drafted NDA gives you a well-structured first draft quickly, but if the information is especially valuable, or you need a watertight agreement, have a lawyer review it. Book a fixed-price FD Consult call with a practising lawyer, or contact us to review the draft with you.

Received an NDA instead? Read Before You Sign an NDA: 10 Things Founders Should Know.

Moving on to a deal? Read What Is a Term Sheet?

For more walkthroughs like this one, visit our podcast and videos.

Frequently asked questions

Is there a standard NDA?

Not really. The right wording depends on the direction of the information, the purpose, what counts as confidential, how long it lasts, whether personal data is involved and which country's law applies.

How long does it take to draft an NDA with FD AI?

About four minutes to answer the questions, and the draft is ready shortly after. You can skip questions and fill the blanks later.

Should I use a one-way or a mutual NDA?

Use a one-way NDA when only one side shares confidential information, and a mutual NDA when both sides do. A mutual NDA is not automatically better.

How long should an NDA last?

Two to five years is common. You can ask for longer if the information will stay sensitive, and trade secrets are often protected for as long as they remain secret.

Should an NDA include a non-compete or non-solicitation clause?

Generally no. Those restrictions go beyond confidentiality and belong in a separate agreement, which is why FD AI leaves them out of an NDA.

What if the information includes personal data?

The NDA should add obligations on the recipient under the data protection law that applies, such as Singapore's PDPA or the GDPR.

Is an NDA drafted with FD AI specific to my country?

Yes. The governing law you choose carries through into the draft, so the clauses and conventions match that jurisdiction.

Can I edit the NDA after it is drafted?

Yes. Edit it on screen, ask FD AI to change or explain any clause, change your answers and redraft, or download it as a Word document.

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Draft your NDA in minutes

FD AI asks these seven questions and turns your answers into a jurisdiction-specific NDA you can edit on screen or download as Word. Give it a go: your first week is on us.