Startups Anonymous Est. 2013 · Read-only archive
Questions

Client is asking me to sign an NDA with $10M penalty

Recently started to work on project with a client and almost half of the work is done. He mentioned before that I will have to sign an mutual NDA to protect both of us in terms of work and ideas that are discussed, but now he is asking to sign a one-way NDA with a $10 million penalty for a small $100 job as part of what we discussed.

7 answers from the community

AAnonymous· Nov 25, 2015

Just walk away. You're a professional and you don't have to put up with this kind of insanity.

AAnonymous· Nov 26, 2015

Run.

AAnonymous· Nov 26, 2015

Eff heem. If you're in the US decline to sign it and threaten to sue him in small claims if he doesn't pay you.

You can't change the terms halfway. Unless of course both parties agree to it.

AAnonymous· Nov 26, 2015

Just strike out the 10 million dollar fine from the NDA (and everything else that is unreasonable) and then sign it (or, create/download your own mutual NDA).

But anyway, for a $100 job an NDA?? What did I just read..

AAnonymous· Nov 27, 2015

NDAs are reasonable if the company is in stealth even though it's just a coffee conversation. What is not reasonable is to have someone do work for you and then making signing an onerous contract halfway as a requirement to get paid.

AAnonymous· Nov 29, 2015

It only opens the door to lawsuits.

AAnonymous· Nov 29, 2015

don't sign and go away