A confidentiality agreement, also known as non-disclosure agreement, is a legally binding document that requires parties to keep specified information confidential.
That information could be sensitive, private or valuable. The confidentiality agreement should clearly state details including who the parties are, their key obligations, and the consequences of non-compliance with the agreement.
Such agreements are frequently used in sale negotiations, in partnerships and joint ventures, in employment contracts, and in the engagement of external consultants.
A confidentiality clause may be inserted in a contract instead of having a stand-alone agreement.