Non-disclosure agreements (NDAs) are one of the most commonly drafted documents in legal practice. Under German law, they are governed primarily by the BGB (Bürgerliches Gesetzbuch), particularly §§ 311, 242, and 305–310.

**Key Clauses to Include**

1. **Definition of Confidential Information** — Be precise. Courts have struck down overly broad definitions under § 138 BGB.

2. **Duration** — German courts generally accept 2–5 years; perpetual NDAs may be challenged.

3. **Exclusions** — Standard exclusions for publicly available information, independently developed information, and mandatory disclosures.

4. **Remedies** — Specify a contractual penalty (Vertragsstrafe) under § 339 BGB for breach.

5. **Jurisdiction** — Specify German courts and German law as governing law.

**Common Pitfalls**

- Failing to specify the purpose of disclosure

- No clear definition of "third parties" to whom disclosure is prohibited

- Missing provisions for return/destruction of confidential materials

- Not addressing employee obligations (consider separate employee NDAs)

**Enforceability**

German courts will enforce NDAs that are specific, reasonable in scope, and not contrary to public policy. An overly broad NDA that restricts an employee's economic freedom may be partially or wholly invalid under § 138 BGB.