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A confidentiality statement, also called a confidentiality agreement or clause or a non-disclosure agreement (NDA), is a binding contract. The other party agrees to keep certain information to themselves, and not disclose it. In other words, the other party must keep that information a secret.
A confidentiality agreement is a legal document that binds one or more parties to keep secret or proprietary information confidential or proprietary. An NDA is a kind of a contract that upholds secrecy; it does so by defining a confidential partnership and legally binding any parties who sign the NDA to that
Generally, an effective confidentiality statement example must include these basic parts:The definition of confidential information.The parties involved.The reason the recipient received the information.Any limitations or exclusions on confidential information.The obligations of the receiving party.Term or time frame.More items...
Typically, a legal professional writing the NDA will complete these steps:Step 1 - Describe the scope. Which information is considered confidential?Step 2 - Detail party obligations.Step 3 - Note potential exclusions.Step 4 - Set the term.Step 5 - Spell out consequences.
A typical confidentiality clause might say, "The phrases and circumstances of this Agreement are completely confidential between the parties and shall not be disclosed to anybody else. Any disclosure in violation shall be deemed a breach of this Agreement."