How to Spot Red Flags in an NDA with AI

Use AI to protect your rights before signing an NDA

What Is an NDA?

A Non-Disclosure Agreement (NDA) is a legal contract meant to protect confidential information. Freelancers, job seekers, startups, and creators often sign NDAs without fully understanding the risks.

But not all NDAs are harmless. Some contain hidden red flags that could limit your future work, creativity, or even ownership of your ideas.

Why NDAs Can Be Dangerous

Common risks include:

  • πŸ“Œ Perpetual obligations β€” You’re bound forever
  • 🚫 Non-compete language β€” You can’t work in your own field
  • πŸ’‘ IP assignment β€” They might claim ownership of your ideas
  • πŸ”’ Unilateral terms β€” Only you are bound, not them

These clauses can damage your career or business β€” and many people miss them.

How AI Helps You Spot the Problems

With our AI legal simplifier, you can upload an NDA and get a clear, simplified breakdown of each clause β€” in plain English.

  • ⚠️ Highlights risky language
  • πŸ“„ Shows what you're obligated to do β€” and for how long
  • 🀝 Reveals whether the terms are fair or one-sided

Try it Free – No Signup Required

Example: Risky Clause Breakdown

Original NDA clause:

β€œThe Receiving Party shall not disclose any Confidential Information for an indefinite period following the termination of this Agreement.”

AI explanation:

β€œYou’re expected to keep this information secret forever, even after the contract ends.”

🧠 Tip: You can ask for a fixed term (e.g. 2 years) to avoid permanent obligations.

Other Red Flags to Watch For

  • ❌ IP ownership transfers hidden in confidentiality clauses
  • πŸ” Auto-renewal or rolling NDAs
  • πŸ’Ό Clauses that restrict future clients or employers
  • πŸ“ Jurisdiction clauses that force foreign legal systems

Final Thoughts

NDAs are important, but they shouldn’t trap you. Before signing anything, run it through AI to catch hidden risks. If the AI flags something serious, consider negotiating the clause or asking a lawyer for help.

Don’t sign blindly β€” simplify first.

πŸ‘‰ Upload your NDA for instant AI simplification