What is a Confidentiality Agreement?

April 7, 2023by Jeffrey Davis

A confidentiality clause, also known as a non-disclosure agreement (NDA), is a legal contract that prohibits one or more parties from disclosing certain confidential information to third parties. A confidentiality clause can be included in an employment agreement, a business contract, or any other type of agreement where the parties want to protect sensitive or confidential information.

The confidentiality clause typically specifies what types of information are considered confidential, the duration of the confidentiality obligation, and any exceptions to the obligation (such as disclosures required by law or to authorized personnel). The clause may also outline the consequences of breaching the confidentiality obligation, such as monetary damages or injunctive relief.

Examples of information that may be subject to a confidentiality clause include trade secrets, client lists, financial information, intellectual property, and other proprietary information. By including a confidentiality clause in an agreement, parties can protect their sensitive information and minimize the risk of unauthorized disclosure or misuse.