NDA is an acronym for Nondisclosure Agreement. It is used to share confidential information and personal data with another party, such as trade secrets or inventions that are not patented. Also known as confidentiality nondisclosure agreements, confidentiality agreements, or proprietary data information agreements.

Nondisclosure agreements can be classified into three different types:

Unilateral

Bilateral

Multilateral

Nondisclosure Agreements – Unilateral

These agreements, which are also called one-way nondisclosure agreements, require only that one party disclose confidential information and data to the other. These are the most common types of Nondisclosure Agreements. Contract attorneys with experience in such agreements can assist clients before signing.

The most basic forms of unilateral nondisclosure agreements are:

Nondisclosure agreements between employers and employees

These agreements are often required by employers to be signed by employees as soon as they start working. These agreements prevent employees from disclosing sensitive company information and data.

Trade Secrets

Business plans and development plans

Pricing data

Sources of supply

Plans of operation

Merchandising systems

Information and data on technical matters, such as inventions and projections

Nondisclosure Agreements between the Company and its Recruiters

Companies can use these non-disclosure contracts to prevent recruiters from disclosing confidential information and data. Like employer-employee nondisclosure agreements, company-recruiter nondisclosure agreements restrict recruiters from sharing critical business data and information that could reduce the company’s competitiveness. Companies will add a detailed provision to avoid conflict of opportunities clauses and non-competition clauses to this nondisclosure agreement to limit recruiters from using the knowledge they’ve gained while working at the company. Recruiters have greater flexibility and autonomy as independent workers than employees. Companies will place more restrictions on recruiters in order to stop them from sharing and using data that could have a negative impact on competition.

Inventor-Evaluator Nondisclosure Agreements

The evaluator cannot patent, use, or market the inventions of inventors who have signed unilateral nondisclosure contracts. These nondisclosure contracts also restrict evaluators’ use and disclosure of the inventors.

Business operations include financial information and data, information about vendors, information on internal costs, information about external contacts and business methods, as well as data and data regarding business operations.

Data and information about customers, such as names, contact information and data, and data provided by the customer

Intellectual property is any intellectual property

Data and information on services, including data related to inventors’ products and services

Accounting data, information and data, including balance sheets, information and data on company liabilities, expense reporting, and profit and loss reporting

Nondisclosure agreements between the seller and buyer

Sellers can use nondisclosure agreements in order to prevent buyers from sharing information and data that they were exposed to when selling goods or services. They typically prevent buyers from disclosing the following information:

Information about the business operations of the seller, including financial data and internal information

Intellectual property is any intellectual property

The seller will describe the production processes, such as the methods used to create, manufacture, and produce the products and services.

Computer technology includes all scientific and technical data about the machine or process used by the seller.

Bilateral Nondisclosure Agreements

A bilateral nondisclosure agreement, also known as two-way nondisclosure or mutual nondisclosure agreement, requires both parties to share their confidential data and information. Both parties can limit other parties’ use and share their data and information. Bilateral nondisclosure agreements are used in situations where parties are required to exchange a lot of personal business data and information during negotiations. This includes mergers and purchases, joint ventures, and all types of corporate takeovers.

Multilateral NNon-DisclosureAgreements

Multilateral nondisclosure or multiparty agreements are agreements between three or more parties where one party will divulge data and information to other parties. These agreements replace the need for bilateral or unilateral nondisclosure agreements. Multilateral nondisclosure contracts are common in complicated, high-stakes deals. A multiparty agreement of confidentiality can illustrate this type of nondisclosure agreement ( Click Here to see an example of a three-way agreement of privacy. Three or more companies can use this agreement to ensure that they are only sharing confidential information and data.