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How to make
a safe NDA
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/
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).
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.
There are 3 types of
NDA agreements
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
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.
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.
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.
Benefits of a mutual NDA
Confidentiality for both parties1
Confidential information disclosed by either
party during negotiations will be protected.
Extra protection2
If negotiations for mergers, acquisitions and
joint ventures fail, disclosed commercially
valuable confidential information cannot be
used to benefit either party.
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.
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.
How to Make a Safe NDA

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How to Make a Safe NDA

  • 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.