A Non-Disclosure Agreement (NDA) is a legal contract that prevents parties to an agreement from disclosing certain information that is deemed to be confidential. The confidential information is particularized in the NDA and can include any information that can be potentially harmful to an individual or company, such as formulas, collections of data, processes, know-how, etc. You can download a Non-Disclosure Agreement template here or make your own using our online form builder.
Depending on the scope of information being protected, there are two types of NDAs:
A Mutual NDA and Unilateral NDA have minor differences in the way they are written, they both contain all of the essential legal provisions that must be included in it. However, if both sides share proprietary information to achieve common goals, they should use a mutual NDA to provide a certain level of protection to each of them.
There are no significant legal differences between an NDA and a Confidentiality Agreement, however, specialists tend to use them in different situations. This leads to distinguishing a few moments based on the way these contracts are being used:
From the differences stated above, it is clear that both of the documents, regardless of which title they have, guarantee the same level of protection since all of the provisions in them are negotiable and changeable. Choosing one or another is mostly a preference based on habit since they are essentially the same and are being used for the same purpose.
A signed NDA gives the party that owns and shares confidential information a guarantee that if another party breaks the NDA there will be consequences. If a breach occurs then the owner of the information has the right to sue another party for damages. There are different types of damages that can be compensated, such as (but not limited to):
Depending on the provisions included in the NDA, it's specifics, and the parties involved, there can be other remedies for a situation when a party breaks the contract, such as employment termination, court order, etc.
A Non-Disclosure Agreement is a legal contract. It means that a basic NDA contains all the statements typical for legal contracts, such as:
Since a Non-Disclosure Agreement is a document of great importance, its content should give attention to every item indicated there. It will help if a breaching situation ever occurs and a party will have to file a lawsuit.
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