What is meant by confidentiality agreement?

Confidentiality agreement is also called as non-disclosure agreement, which is a legal contract between two parties. This contract outlines the knowledge, confidential material and information that the two parties wish to share among themselves for various purposes. This agreement maintains a confidential relationship between the two parties to protect any type of information or trade secrets. Confidentiality agreement can protect any type of business secrets or confidential information. Some of the details in the agreement include disclosure period, financial information, customer lists, vendor lists, verbal representations, etc.

Basically there are two types of confidentiality agreement in which you can select according to your wish. They are mutual agreement and standard agreement. This agreement is used to protect your secret information for meetings with business partners or potential investors. One can use agreement for the following purposes such as business plans, customer and prospect lists, commercial information, trading information, to formalize a relationship, intellectual property, trade secrets, etc. The creation of agreement is to create the confidential relationship. To be on the safer side, the agreement should be in a written document than the oral document.

The recipient of the agreement should include all type of information regarding their business or any other. The agreement performs several functions such as it prevents commercial or technical information, it can also prevent penalty of valuable patent rights and it can define the information which can be and cannot be disclosed. The following information can be kept confidential between two parties such as engineering drawings, prototypes, data, know-how, tools, test results, systems and computer software. A copy of the confidentiality agreement should be with both the parties for safety purpose. This agreement will enable you to accept all types of stimulating business activities with confidence.

This agreement is considered as the trust bridge between the two parties and also used as the clarification in the legal battle. It is always safe to have a written document than the oral document. Before signing the confidentiality agreement, read the instructions carefully given in the document. This is the best way for success of a new business.

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