What is a Confidentiality Agreement and its Types

A non disclosure agreement is a contract executed between parties with binding terms restricting either both or any one party from sharing any confidential information with any third party.

Purpose:

Non disclosure agreement is an effective way to protect the trade secrets, intellectual property, software etc. to maintain the competitive advantage of the organization.

Types of Non Disclosure Agreement

Based on the nature of the agreement, it can either be classified as bilateral or unilateral.

Bilateral Non Disclosure Agreement – Both the parties mentioned in the agreement have to comply with non disclosure requirement.

Unilateral  Non Disclosure Agreement – Only one of the parties to the contract is obligated to comply with non disclosure requirement.

Along with the above mentioned categories, Non Disclosure Agreement can be classified on the basis of its applicability. For Example:

Inventor Confidentiality Agreement

Employee Non-disclosure Agreement

Interview non-disclosure agreement

Customer Confidentiality Agreement

Standard non-disclosure agreement

Components of a Non Disclosure Agreement

• Mention details of involved Parties
• Nature of relationship between the parties to the contract.
• Define the nature of information shared between the parties and what part of it constitutes as confidential.
• Receiver’s obligations and the extent of liability in reference to that confidentiality information.
• Term or duration of such contract.
• Clauses relating to injunction, arbitration and jurisdiction in case of any dispute etc.
• Name and description of parties
• Date and place of signing

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