Customer Confidentiality Agreement
Understanding this form
The Customer Confidentiality Agreement, also known as a nondisclosure agreement, is a legal document that protects proprietary information shared between a company and its customers. This form establishes a duty of confidentiality where the customer agrees to keep sensitive information secret, ensuring maximum protection for both parties. Unlike other agreements, this form specifically outlines the scope of confidentiality and sets forth the potential consequences for breaching this duty.
Key parts of this document
- Identification of the parties: Specifies the Company and Customer involved in the agreement.
- Functional documentation clause: Details the materials provided to the Customer for review purposes.
- Confidential information section: Defines what constitutes confidential materials and the obligations regarding them.
- Return of materials requirement: Mandates the return of all confidential materials upon request or after the review.
- Signatures: Requires the signatures of authorized officers from both the Company and the Customer to enforce the agreement.
When this form is needed
This agreement should be used when a company plans to disclose sensitive information to its customers for the purpose of evaluating a product or service. It is essential when sharing trade secrets, proprietary data, or any confidential documents that require protection against unauthorized disclosure. Common scenarios include software demonstrations, product trials, and consultations where sensitive information is exchanged.
Who should use this form
- Businesses that provide proprietary information to customers for evaluation.
- Companies offering software or technology solutions requiring evaluation by clients.
- Consultants or service providers sharing sensitive operational details with potential clients.
- Any business wishing to safeguard its trade secrets and proprietary information.
How to complete this form
- Identify the parties: Enter the names and addresses of both the Company and the Customer.
- Specify the date: Fill in the date when the agreement is made.
- Detail the functional documentation: Describe the materials the Company will share with the Customer.
- Review the confidentiality obligations: Ensure all obligations regarding the confidential information are clearly stated.
- Obtain signatures: Have authorized representatives from both parties sign and date the agreement.
Does this form need to be notarized?
This form usually doesn’t need to be notarized. However, local laws or specific transactions may require it. Our online notarization service, powered by Notarize, lets you complete it remotely through a secure video session, available 24/7.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes to avoid
- Neglecting to define what constitutes confidential information.
- Failing to specify the obligations of the Customer clearly.
- Omitting signatures from one or both parties, rendering the agreement unenforceable.
- Assuming that the agreement is valid without checking state-specific laws.
Why use this form online
- Convenience of accessing and downloading the form from anywhere.
- Editability allows users to customize details specific to their agreement.
- Reliability, as forms are drafted by licensed attorneys to ensure legal compliance.
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FAQ
2. Clearly label all confidential information as confidential. This means writing confidential on documents or any folder you keep them in. If you are sending an email, make sure the title clearly identifies it as confidential.
Simply defined, a confidentiality statement for documents is a legally binding document stating that two parties won't profit from or share confidential information.
Depending on the complexity of what you need protected and the number of parties involved, the cost of having an NDA drafted can vary significantly. When you hire a lawyer in the Priori network, drafting an NDA typically costs anywhere from $175-$1,500.
Set the date of the agreement. Describe the two parties, sometimes called the Disclosing Party and the Receiving Party.7feff Include names and identification, so there can be no misunderstanding about who signed the agreement.
"There are several key pieces of information that should be included in NDAs, or non-disclosure agreements. The most important items include customer lists, financial and profit margin information, product breakdowns, bestselling segments and sales scripting and messaging."
Confidentiality agreements usually allow the recipient to disclose confidential information if required to do so by court order or other legal process.
Here's some breach of confidentiality examples you could find yourself facing: Saving sensitive information on an unsecure computer that leaves the data accessible to others. Sharing employees' personal data, like payroll details, bank details, home addresses and medical records.
If an NDA lists extreme punishments for breaking the confidentiality agreement, you shouldn't sign it. A common consequence for breach of contract under an NDA is termination of employment. Be aware of what is considered a breach of contract.
Employers must be prepared to terminate any employee who refuses to sign the agreement. If an employer allows even one employee to refuse and remain employed, the agreements signed by the other employees will not be legally binding.
