Whatever you say in confidence to someone is supposed to be a secret. That means no one else should not have access to the same or be privy to it. But these days can you trust someone with your information?

Unless of course there is a specific legal binding to the process everyone is at liberty to disclose information irrespective of any reason. The only way this can be prevented is a confidentiality agreement.

Alternative Names for Confidentiality Agreement

Confidentiality agreements have existed since the meaning of the word trust has been diluted to a great extent. However, they have different names and consist of different types of privileged information.

The most common synonyms for confidentiality agreements are:

  • Non-disclosure Agreements
  • Secrecy Agreements
  • Confidentiality Disclosure Agreements
  • Proprietary Disclosure Agreements

Although the names are different from each other, they all cover the same features. The purpose of a confidentiality agreement is to ensure that whatever is shared between two individuals or parties does not fall into the hands of any other individual or institution.

What Is a Confidentiality Agreement?

Defining a confidentiality agreement is ambiguous. A confidentiality agreement constitutes information to which only selective people or parties are privies too.

This means that the information that is shared is crucial and vital for the individuals or the parties involved. Such information, however, can be classified into multiple categories.

A confidentiality agreement ensures that all the private info is shared securely between two parties or individuals. It outlines the nature and content of the information that is shared between two parties. They are usually notarized so that they can have a strong legal basis.

Types of Confidentiality Agreement

There are three different types of confidentiality agreements. All of these have their purpose and are meant for different individuals and parties.

Unilateral Confidentiality Agreement

Going by its name, one can say that these agreements are usually formed between two individuals or parties.

They are drawn because an individual or a party shares crucial or vital information with another individual or party which they think might have the chances of being disclosed or divulged.

In that case, the confidentiality agreement is believed to be the best safeguard against such a situation in case there is one.

Bilateral Agreements

A bilateral agreement involves two individuals or parties, but in this case, both sides share essential information. Examples of bilateral agreements are NDAs between financial companies and their shareholders.

Multilateral Agreements

These agreements are usually drawn up between three or more organizations when each of them has shared something with the other in the process of making something together from each of them stand to make substantial gains.

Doctor-patient information and attorney-client privilege fall within the purview of confidential agreements.

What Are Included in a Confidentiality Agreement?

A confidential agreement usually includes the following aspects:

  • Confidential Information: It is shared between individuals where the nature and type of sensitive information are defined and discussed so that there are no further complications. The scope of the information is also highlighted for transparency.
  • Protection of Confidential Information: This part deals with the reason and process of protecting confidential information. It includes the means of achieving confidentiality taken on the part of the individual or the party and the steps that might be made in case any signatory wishes to dilute the narrative of the agreement.
  • Return of Confidential Information: This is followed by a section where the signatories express their agreement of returning the information that is shared after the desired purpose has been achieved or due to a situation that requires the information to be delivered.
  • No Warranty: This part deals with the fact that the owner of the information hands it over on an ‘as is’ basis meaning that no part of the information consists of extended warranties that be utilized for commercial purposes.
  • Limited License: In this section, the parties agree not to claim the information that is handed over to them in light of intellectual property.
  • General Provisions: There are general provisions set by the agreement that deals with the period for which it is supposed to stay in force and the measures that are to be adopted to adhere to the clauses of the agreement.
  • Important Note: The final part of the agreement deals with an important note that suggests that secondary information related to the confidential matter should be shared only in a prescribed form and should be marked ‘confidential’.
  • Signatures: The signature section includes the signatures from both parties. Also, attestation should be done only after a thorough study of the agreement.
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A confidentiality agreement is needed by all those who engage themselves in making something and wishes for their work to receive feedback. CocoSign provides multiple and excellent templates for confidentiality agreements, you could definitely find one that fits your condition.


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