A Confidentiality Agreement — General (also known as a Non-Disclosure Agreement or NDA) is a legally binding contract between two parties in which one party agrees to keep certain confidential information confidential. It is usually used when one party is sharing confidential information with another, such as when two companies are discussing a potential merger, or when an employee is given access to trade secrets. Confidentiality agreements typically outline the information that must remain confidential, how the information must be handled, and the consequences of a breach of the agreement. There are two main types of Confidentiality Agreement — General: unilateral and mutual. A unilateral agreement binds one party to keep the information confidential, while a mutual agreement binds both parties to keep the information confidential.
Confidentiality Agreement - General
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FAQ
Identification of the parties. Definition of what is deemed to be confidential. The scope of the confidentiality obligation by the receiving party. The exclusions from confidential treatment.
The agreement should identify the purpose to which the recipient can put the confidential information. All other uses of the confidential information should be prohibited. Sometimes a confidentiality agreement states that no rights are licensed by the confidentiality agreement. This is stating the obvious.
Describe what the other party is agreeing to. Exercising reasonable precautions against disclosure of the information. Not disclosing Confidential Information without the written consent of the Disclosing Party. Using the information only for business purposes, and only on a ?need to know? basis.
The key elements of confidentiality agreements are: Identification of the parties. Definition of what is defined to be confidential. The scope of the confidentiality obligation by the receiving party. The exclusions from confidential treatment. The term of the agreement.
Confidentiality Clauses for Simple Agreements A confidentiality clause binds parties to nondisclosure of proprietary or confidential information within the larger confines of a contract or agreement. Its scope is generally limited in time and type of information.
Here is a common example: CONFIDENTIALITY NOTICE: This message and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. This information is only for the use of the individual or entity to which it was intended.