What is an Confidentiality Agreement?
A Confidentiality Agreement (also known as a Non-Disclosure Agreement or NDA) is a commercial agreement between two parties to protect confidential information and not disclose it to a third party.
Confidentiality Agreements are very common when:
🔹 hiring employees/contractors
🔹 negotiating business contracts with other businesses
🔹 pitching to potential investors
🔹 sharing commercially sensitive information with suppliers/partners.
You should always get the agreement signed by both parties before you reveal any confidential information to make sure it’s effective.
Do I need a contract?
If you want to protect your ideas, trade secrets or sensitive information from being copied or stolen, a Confidentiality Agreement is essential.
Even if you’re just in early discussions with another party, you should get a Confidentiality Agreement signed to be safe.
Confidentiality Agreements generally enable parties to reveal information with commercial value that they might otherwise keep secret, so that commercial negotiations can continue openly and honestly.
Are there any other names for a Confidentiality Agreement?
Yes, you might have also heard this contract referred to as a Non-Disclosure Agreement, NDA, Secrecy Agreement or Proprietary Information Agreement.
All of them are basically the same thing, just different names for a contract you use to protect confidential information.
What does this Confidentiality Agreement template include?
Our Confidentiality Agreement template covers everything you need:
★ Confidential Information
★ Confidentiality Obligations
★ Return on Request
What’s the difference between a unilateral and a mutual agreement?
There are two types of confidentiality agreements – one way and mutual.
In a one way (“unilateral”) agreement, one party discloses information to another party and that party agrees not to disclose the information.
In a mutual (“bilateral” or “reciprocal”) agreement, both parties agree not to share the other’s sensitive information.
What is confidential information?
Confidential information can be almost anything. It can include a business idea, concept, plan, strategy, design, process, financial information, customer information or a trade secret.
It can take the form of documents, graphics, text, data, files, designs, drawings, technical specifications, systems, processes…and the list goes on. You get the idea!
Is an agreement still legal if it hasn’t been signed?
It’s possible for a verbal agreement to be legally binding, but it’s extremely difficult (if not impossible) to prove, so it’s important to make sure that both parties sign the Confidentiality Agreement before you disclose any confidential information.