1. How to make
a safe NDA

2. A non-disclosure agreement (NDA) (1) is
a contract that's used when confidential
information is being shared.
(1) Link to https://everynda.com/blog/sample-non-disclosure-template/

3. NDA agreements are often perceived
to benefit one party only (the Disclosing
Party) and be a disadvantage for the
other party (the Receiving Party of
confidential information).

4. However, a NDA agreement can be
drafted in such a way that it protects
the interests of not just one party but
other parties involved.

5. There are 3 types of
NDA agreements

6. One-way or unilateral NDA agreements
A unilateral NDA is normally used where
only one party is expected to share
confidential information.
The agreement is created to protect the
Disclosing Party’s information only.
1

7. Two-way or mutual NDA agreements
2
A mutual NDA is appropriate where both parties
intend to share confidential information.
Unlike a unilateral NDA, the NDA can be used
to protect the interests of both parties
to the agreement.

8. Multilateral NDA
3
A multilateral NDA is less common as it involves
more than 2 parties.
This could be in a situation where the disclosing
party intends to disclose confidential information
to more than one party.

9. The best way to make most NDA agreements
safe where there are only two parties
involved, without additional complications,
is to create a mutual NDA.

10. Benefits of a mutual NDA

11. Confidentiality for both parties1
Confidential information disclosed by either
party during negotiations will be protected.

12. Extra protection2
If negotiations for mergers, acquisitions and
joint ventures fail, disclosed commercially
valuable confidential information cannot be
used to benefit either party.

13. Ease of achieving agreement3
It takes less time to work out a mutually
agreeable set of terms and conditions since
both sides have to abide by the same rights
and restrictions.

14. More balanced, fair and reasonable terms4
Mutual NDA tend to be more balanced, fair
and reasonable than one-way agreements.
The drafting party knows that it will be bound
by the same restrictions it is seeking to
impose on the other.