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Confidentiality Agreement

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Confidentiality agreement, also called nondisclosure agreement, is a contract entered into by two or more individuals, in which all parties agree that certain information is to remain confidential. The most important function of a confidentiality agreement is to protect sensitive commercial, technical, or scientific information. A confidentiality agreement is frequently utilized to protect trade secrets or any kind of proprietary data vital to sustained competitiveness. A constructive confidentiality agreement must define exactly what information can and cannot be disclosed. However, the depth and scope of a confidentiality agreement is virtually without limit. For any information deemed confidential by the proprietor may by entered into a confidentiality agreement. If the confidentiality agreement is violated and the information is revealed, the wronged party may pursue legal action and seek injunctive and monetary damages. A confidentiality agreement is common in employment law and is often interred onto by employers and employees.



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