There are three types of confidentiality terms, which are:
unilateral;
bilateral;
multilateral.
Check out the differences between each type below!
Unilateral
The unilateral confidentiality term is applied in a commercial proposal to protect only one of the parties.
When a company provides services to another and needs sensitive data or information about it, the confidentiality agreement in the commercial proposal guarantees that the business that reveals its data outlook email list will not have its information disclosed or used inappropriately.
For example, a company that provides consulting services and needs to collect information about the client. In this case, the term prohibits the service provider from using this data for its own benefit or disclosing it to third parties.
Bilateral
When two companies are forming a partnership and need to ensure that both parties need to keep the data they exchange secret, they must sign a bilateral confidentiality agreement.
Thus, both parties agree not to disclose any sensitive information, and both are protected by law if one of them breaks what was agreed.
Multilateral
The multilateral confidentiality agreement offers protection to all parties involved, with different degrees of commitment. In other words, one of the parties may have greater “prohibitions”, depending on the nature of the contract.
What are the benefits of a confidentiality agreement in a commercial proposal?
Protecting companies' confidential data and sensitive information brings many benefits to those that adopt confidentiality terms in their agreements.
Brings more transparency to relationships
Show professionalism
Preserves your company's image
Establishes trust between the parties
Reduces errors and expenses
Imagine this: you’re a startup that’s about to launch a highly innovative product on the market. To create a killer advertising campaign, you hire a research and data intelligence company to better understand your target audience.
Without a confidentiality agreement in the commercial proposal for this service, the company you hired has valuable information about your business model and can find loopholes in the contract to disclose details of your innovation and interrupt any chance of your business standing out from the competition.
Therefore, the confidentiality agreement preserves your competitive advantage, and may trigger legal proceedings against the party that breached this contract.