What is the confidentiality agreement?

[Bruce]

Hey everyone, I have been hearing the term “confidentiality agreement” quite a lot these days. Can someone explain to me what it really means in simple terms? Is it the same as an NDA, and when do we really need one? What type of information does it really protect?

 

[Louis]

Imagine it was a digital pinky swear but with real legal repercussions. It is just a deal between two parties that they do not leak the secrets. It is just NDA (Non-Disclosure Agreement) after all. You will need one any time that you need to disclose a million-dollar idea, trade secrets, or client list to a person you do not completely trust yet. It guards a source code to your grandma secret cookies recipe.

 

[Robbin]

A non-disclosure agreement or confidentiality agreement is a legal agreement that disallow sharing of sensitive information without consent. It is widely applicable in businesses, employment and partnerships to protect the trade secrets, client information or proprietary information.

The parties also do not disclose information that is contained in their agreement and must be used as per their agreement. This will contribute towards building trust and it eliminates abuse or unauthorized disclosure of confidential information.