Confidentiality Agreement

What is Confidentiality Agreement?

A confidentiality agreement is a legally binding contract in which one or both parties agree not to disclose specified information to third parties. In employment, confidentiality agreements protect sensitive business information such as trade secrets, financial data, client information, and proprietary processes. They may be standalone documents or clauses within a broader employment contract. Confidentiality agreements define what information is covered, the duration of the obligation, permitted disclosures, and the consequences of breach. They are commonly used alongside non-disclosure agreements, though the terms are often used interchangeably.