Confidentiality agreements are very useful to prevent unauthorized disclosures of information, but they have inherent limitations and risks. When preparing a confidentiality agreement, clearly define the scope of the contract.Nondisclosure agreements are only as effective as they are enforceable. The Confidentiality Agreement enables an inventor to disclose intellectual property without losing rights to that property. Disclosure agreement is a legal document used to protect confidentiality in disclosure to potential investors, creditors, clients, or suppliers. NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. And King Research LLC and Other Business Contracts, Forms and Agreeements.