---

name: pa-workflow-transactional-nda-triage-red-yellow-green
description: Use when a transactional lawyer or in-house team needs to rapidly triage an incoming NDA and assign a red / yellow / green approval status before investing full review time. Produces a structured triage report with a three-color risk rating, flagged issues by severity, and a recommended next step (sign as-is, redline specific points, or escalate). Applicable across multiple jurisdictions; MENA-aware for UAE, KSA, LB, and EG NDAs.
license: MIT
metadata:
id: pa-workflow.transactional.NDA-triage-red-yellow-green
category: pa-workflow
practice_area: Transactional
jurisdictions: [multi, UAE, KSA, LB, EG, DIFC, ADGM, UK, US]
priority: P2
intent: [NDA, triage, red-yellow-green, contract-review, confidentiality, transactional]
related: [pa-workflow-transactional-contract-redline-20min, pa-workflow-transactional-clause-library-check, pa-workflow-transactional-msa-against-firm-playbook, draft-nda-mutual, router-legal-flows]
source: Louis — HAQQ Legal AI (github.com/sboghossian/mini-claude-for-legal)
version: "1.0"

Transactional NDA Triage — Red / Yellow / Green

Purpose

NDAs are high-volume, low-to-medium risk documents. An in-house team reviewing dozens per month cannot afford full legal review on every NDA. This triage workflow applies a structured three-color gate:

• GREEN: safe to sign with no or minimal changes
• YELLOW: sign after specific targeted redlines; no further escalation needed
• RED: escalate to senior counsel; significant issues require resolution before signing

The workflow outputs a decision in under 5 minutes and, where the rating is YELLOW, provides the specific redlines needed.

Inputs

Input	Required	Notes
NDA text	Yes	PDF, Word, or plain text
Client's position	Yes	Disclosing party / receiving party / mutual
Type of disclosure	Recommended	Business discussion, M&A diligence, vendor evaluation, technology partnership
Sensitivity of information to be shared	Recommended	Low (general business info) / Medium (financials, IP) / High (trade secrets, regulatory data)
Counterparty profile	Optional	Public company, PE-backed, government entity, individual
Prior NDA with same party	Optional	Supersession clause may be relevant

Triage Checklist

The triage runs through 12 checkpoints. Each checkpoint produces a GREEN / YELLOW / RED flag. The overall rating is determined by the worst individual flag.

Checkpoint 1 — Mutual vs. unilateral

Status	When
GREEN	NDA is mutual; both parties have equivalent obligations
YELLOW	NDA is unilateral but client is the receiving party; can sign with note
RED	NDA is unilateral and client is the disclosing party only; counterparty has no obligations

Checkpoint 2 — Definition of Confidential Information

Status	When
GREEN	Standard definition — all non-public information disclosed; with standard exclusions (public domain, independently developed, received from third party)
YELLOW	Definition is overly broad but can be narrowed with a one-line clarification
RED	Definition has no exclusions; everything disclosed becomes permanently confidential

Checkpoint 3 — Permitted disclosure carve-outs

Status	When
GREEN	Standard carve-outs: legal requirement, court order (with notice to disclosing party where possible)
YELLOW	Missing notice requirement for compelled disclosure — add with one-line amendment
RED	No permitted disclosures at all, including legal or regulatory requirements

Checkpoint 4 — Term and termination

Status	When
GREEN	Fixed term (1–3 years) with survival of obligations for 2–5 years post-termination
YELLOW	Very long term (5+ years active obligations) — flag but acceptable for trade-secret-level disclosures
RED	Perpetual obligations with no end date (creates indefinite liability) OR no survival after termination

Checkpoint 5 — Standard of care for confidentiality

Status	When
GREEN	Same care as own confidential information, but no less than reasonable care
YELLOW	"Best efforts" standard (too high; should be "reasonable efforts") — redline
RED	No standard stated; or "absolute" standard

Checkpoint 6 — No reverse-engineering / no-use restriction

Status	When
GREEN	Use restricted to evaluation purpose; no reverse-engineering
YELLOW	Missing explicit no-reverse-engineering clause for technical disclosures
RED	No use restriction at all; information can be used for any purpose

Checkpoint 7 — Return or destruction on termination

Status	When
GREEN	Return or destroy + certify within 30 days of termination / request
YELLOW	Return or destroy without certification — add one line
RED	No return or destruction obligation

Checkpoint 8 — No solicitation / no-hire

Status	When
GREEN	Absent (standard for NDAs; these provisions belong in a separate agreement) OR limited to key personnel with 12-month window
YELLOW	Broad no-hire covering all employees for 2+ years
RED	Broad non-compete (not just non-solicit) buried in an NDA — NDAs should not contain non-competes

Checkpoint 9 — Injunctive relief provision

Status	When
GREEN	Standard acknowledgment that breach may cause irreparable harm and injunctive relief is available (does not waive other remedies)
YELLOW	Present but overly broad (pre-acknowledges entitlement to injunction without requiring proof of irreparable harm)
RED	Waiver of right to challenge any injunction sought — unacceptable

Checkpoint 10 — Governing law and dispute resolution

Status	When
GREEN	Clear governing law; sensible forum (matches where parties are located or where disputes are practical to resolve)
YELLOW	Missing governing law — add
RED	Governing law is the counterparty's home jurisdiction where enforcement would be impractical for client

Checkpoint 11 — Assignment and change of control

Status	When
GREEN	No assignment without consent; or assignment allowed only in M&A context with acquirer bound by same obligations
YELLOW	Assignment to affiliates without restriction — acceptable if affiliates are clearly defined and bound
RED	Unrestricted assignment — allows counterparty to transfer obligations to any third party

Checkpoint 12 — Liquidated damages / penalty clause

Status	When
GREEN	Absent (standard)
YELLOW	Pre-agreed damages at commercially reasonable level
RED	Unlimited or punitive pre-agreed damages; or criminal complaint right for breach (seen in some MENA NDAs)

MENA note: Some Lebanese and Gulf NDAs include a clause giving the disclosing party the right to file a criminal complaint for breach of confidentiality. This is unusual and potentially problematic — flag as RED. Criminal complaint remedies for commercial disputes are a litigation-tactic risk.

Output

Triage Card

## NDA Triage — [Counterparty Name] — [Date]

### OVERALL RATING: 🟡 YELLOW — Sign after 3 targeted redlines

| Checkpoint | Status | Issue |
|---|---|---|
| Mutual / unilateral | 🟢 GREEN | Mutual — OK |
| Definition of CI | 🟢 GREEN | Standard with exclusions |
| Permitted disclosure | 🟡 YELLOW | Missing notice for compelled disclosure |
| Term | 🟢 GREEN | 2-year term; 3-year survival |
| Standard of care | 🟡 YELLOW | "Best efforts" — should be "reasonable efforts" |
| No-use restriction | 🟢 GREEN | Purpose-limited |
| Return/destruction | 🟡 YELLOW | Missing certification obligation |
| No-solicit | 🟢 GREEN | Absent |
| Injunctive relief | 🟢 GREEN | Standard acknowledgment |
| Governing law | 🟢 GREEN | DIFC — appropriate |
| Assignment | 🟢 GREEN | Consent required |
| Penalties | 🟢 GREEN | Absent |

### REQUIRED REDLINES (3)

1. **Clause 6(b)** — Compelled disclosure: add "with prompt prior written notice to Disclosing Party where legally permitted"
2. **Clause 3** — Standard of care: replace "best efforts" with "reasonable efforts"
3. **Clause 9** — Return/destruction: add "and certify in writing such destruction within 10 business days"

### Recommendation
Sign with above 3 redlines. No escalation needed.

MENA-Specific Notes

• Arabic NDA requirement (UAE/KSA onshore): For agreements involving UAE mainland or KSA parties where disputes may be brought in local courts, the Arabic version controls in court proceedings. If the NDA is in English only, the party relying on it in a UAE or KSA court must obtain a certified Arabic translation. For high-sensitivity disclosures, consider drafting bilingually.
• Notarization: Standard NDAs do not require notarization in UAE or KSA. However, if the NDA forms part of a larger transaction that requires notarized documents, check whether the NDA needs to be part of that package.
• Public-sector counterparties: NDAs with UAE or KSA government entities require careful review — government-entity NDAs often exclude or limit obligations on the government side. Flag for senior review.

Related Skills

• [[pa-workflow-transactional-contract-redline-20min]]
• [[pa-workflow-transactional-clause-library-check]]
• [[pa-workflow-transactional-msa-against-firm-playbook]]
• [[draft-nda-mutual]]
• [[router-legal-flows]]