Unilateral Confidential Disclosure Agreement
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FAQ
The two main types of NDAs are Unilateral and Mutual. Unilateral NDAs are used when only one party is disclosing information such as an employer, a startup or a company to an employee, investor or consultant respectively. On the other hand, a mutual NDA is used when both parties are disclosing confidential information.
The unilateral non-disclosure agreement is used when only one party is disclosing confidential information ? for example, a company discloses marketing secrets to an ad agency, or a tech business discloses a new product to a software engineer. The term ?unilateral? is meant to signify this is a ?one-way arrangement?.
Unilateral NDAs are used when only one party is disclosing information such as an employer, a startup or a company to an employee, investor or consultant respectively. On the other hand, a mutual NDA is used when both parties are disclosing confidential information.
In a unilateral NDA, only one party agrees to keep the other party's confidential information private. However, in a bilateral NDA, both parties agree to keep the other's confidential information private.
Unilateral NDAs only require one party to disclose confidential information, while bilateral NDAs require two parties to disclose private information. Multilateral NDAs involve three parties and require at least one of them to disclose private information to the other parties.
A unilateral non-disclosure agreement, or 1-way NDA, is an agreement that requires only one (1) signatory is obligated to safeguard confidential information. If the obligated party shares the information, they may be subject to legal and monetary damages from a local court.
In the case where both parties share confidential information with one another, the contract is called a mutual NDA. This is the fundamental difference between unilateral and mutual NDAs: unilateral NDAs are one-way agreements, whereas mutual NDAs are two-way or reciprocal.