The Alabama non-disclosure agreement (NDA) may be used for any type of information that is to be transferred from one (1) party to another with the intention of said information being kept secret by the receiving party. By signing an NDA, the receiving party pledges to withhold the confidential information from being released to third (3rd) parties, including but not limited to the general public, interested parties, competitors, or anyone else that may harm the disclosing party.


Laws – Title 8, Chapter 27 (Alabama Trade Secrets Act)

Misappropriation (§ 8-27-3) – If the confidential information is released through improper means the disclosing party shall be subject to damages in accordance with § 8-27-4.

Trade Secret Definition (§ 8-27-2(1)) – A “trade secret” is information that:

  • a. Is used or intended for use in a trade or business;
  • b. Is included or embodied in a formula, pattern, compilation, computer software, drawing, device, method, technique, or process;
  • c. Is not publicly known and is not generally known in the trade or business of the person asserting that it is a trade secret;
  • d. Cannot be readily ascertained or derived from publicly available information;
  • e. Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy; and
  • f. Has significant economic value.