NDA vs Confidentiality Agreement
A detailed comparison to help you choose the right option.
Non-Disclosure Agreement (NDA)
A specific legal contract focused solely on preventing disclosure of confidential information. Typically used for discrete business dealings.
Advantages
- Simple and focused
- Well-understood by courts
- Quick to execute
- Standard templates widely available
Disadvantages
- Limited scope — only covers disclosure
- May not address information use restrictions
- Often one-directional
Confidentiality Agreement
A broader agreement that may cover confidential information handling, usage restrictions, and related obligations beyond just non-disclosure.
Advantages
- Broader protection scope
- Can include usage restrictions
- More comprehensive obligations
- Better for ongoing relationships
Disadvantages
- More complex to draft
- May require more negotiation
- Can be seen as more onerous
Key Differences
- 1Scope: NDAs focus on non-disclosure; confidentiality agreements can cover usage and handling
- 2Complexity: NDAs are typically simpler and shorter
- 3Common usage: NDAs for one-time disclosures; confidentiality agreements for ongoing relationships
- 4Legal effect: Both are equally enforceable when properly drafted
Which Should You Choose?
Use an NDA for quick, straightforward protection when sharing specific information. Choose a confidentiality agreement for ongoing business relationships where you need broader control over how information is used, stored, and handled.
Ready to create your agreement?
Generate professional legal documents with AI assistance.
Get Started Free