Difference Between Non-Disclosure and Confidentiality Agreement

The protection of confidential and private information is paramount. To achieve this, nondisclosure and confidentiality agreements are used. Although used simultaneously, the two differ based on the level of secrecy attained, the number of parties involved and country of jurisdiction, just to name a few. 

However, both agreements must contain;

• Names of all the parties involved
• An elaborate of what is considered as the private information
• A formal restriction against the use of confidential information
• Measures to be taken in case of a breach 

Non-Disclosure Agreement

This is a document used in the protection of private or personal information in business setups or third party situations. It is common as a unilateral agreement, whereby one party is held liable for not sharing or disclosing personal information. Common third parties involved in non-disclosure agreements include customers, investors, suppliers, and vendors. Often, the parties involved may opt to keep a part or all information private such as pricing agreements, trade secrets, new inventions, financial information, and intellectual property.  

Confidentiality Agreement

This is a document used in the protection of private or personal information in individual or employment situations. This includes protecting or restricting information from theft by third parties such as employees, electronic devices as well as how confidential information can be used. It is common as a bilateral agreement. 

Similarities between Non-disclosure and Confidentiality Agreement

• Both are used in the protection of confidential and private information
• Both are enforceable by the law

Differences between Non-disclosure and Confidentiality Agreement

Definition

A non-disclosure agreement refers to a document used in the protection of private or personal information in business setups or third party situations. On the other hand, a confidentiality agreement refers to a document used in the protection of private or personal information in individual or employment situations. 

Parties involved

While a non-disclosure agreement is used in business setups or third party situations, a confidentiality agreement is used in personal or employment situations. 

Obligation

A non-disclosure agreement is used in a unilateral obligation whereby one party is held liable for not sharing or disclosing personal information while a confidentiality agreement is used in a multilateral obligation. 

Common practice

Non-disclosure agreements are common in Canada, New Zealand, Australia and England. On the other hand, confidential agreements are common in the United States of America. 

Nature

While a non-disclosure agreement is used when sharing information that should not be disclosed or shared, a confidential agreement is used when sharing information that must be kept private. 

Non-disclosure vs. Confidentiality Agreement: Comparison Table

Summary of Non-disclosure vs. Confidentiality Agreement: Comparison Table

 A non-disclosure agreement refers to a document used in the protection of private or personal information in business setups or third party situations. It is used in a unilateral obligation and is common in Canada, New Zealand, Australia and England. On the other hand, a confidentiality agreement refers to a document used in the protection of private or personal information in individual or employment situations. It is used in a multilateral obligation and is common in common in the United States of America. 

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