NDA vs Confidentiality Deed - which one?
NDA vs Confidentiality Deed – which one works best?
Updated: 8 December 2019
You’ve likely heard more about NDA’s than confidentiality deeds.
But they aren’t the same.
And in a nutshell, here’s how to know which works best for you.
An NDA will work best if:
- you need to e-sign (if your recipient is somewhere else)
- a payment is involved (i.e. you are paying the recipient or the recipient is paying you)
- you accept that you will have 6 years to pursue a breach (whereas a deed allows you more time to handle a breach).
Unlike an NDA, with a confidentiality deed, you will have a longer time period to enforce the deed for a breach.
So, a confidentiality deed will be best if:
- there is no money involved yet (e.g. you are in the initial stages of discussing an idea with a prospective business partner or consultant)
- you need more than 6 years to enforce for a breach (you will have 12 years in QLD, NSW, ACT, NT or TAS and 15 years in VIC and SA).
- you and the recipient can sign a paper copy of the deed by pen.
Also, here are some extra requirements for the confidentiality deed:
- use the words ‘executed as a deed’; and
- be signed by 2 directors or a directors and a company secretary - a requirement from s. 127 of the Corporations Act 2001 (Cth).
Do you have any questions about NDA's or a confidentiality deed? Be sure to leave them below.
I wish you success in your ventures!