What Is a Confidentiality Agreement?
Confidentiality agreements are contracts made with one or more parties agreeing that certain information will remain only between them. Most common forms of confidentiality agreements are between employees and their companies regarding trade secrets.
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Forms
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Confidentiality agreements are contracts. Contracts are legally binding and can come in either oral or written form. Thus, as long as two mutual promises were made between parties and a benefit was conferred, it is a binding contract.
Functions
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Confidentiality agreements often protect secret information from entering the public forum. Alternatively, they state what a party may or may not disclose. Typically, employees sign confidentiality agreements with employers when internal business matters may be acquired.
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Things to Include
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When drafting a confidentiality agreement, it must specify how each party handles the information. It must also include a time period during which confidential information may or may not be disclosed.
Exceptions
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Confidentiality agreements might not bar disclosure of all information received during the parties' relationship. Often times, the agreements have provisions allowing access and disclosure of information for given purposes.
Suggestions
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Confidentiality agreements can be long and wordy. They often contain complex legal jargon and if valid, could be binding contracts. Thus, it might be important to consult a lawyer for advice before signing any such agreement.
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