What is a Confidentiality Agreement?
It is an agreement between two or more parties for keeping the conveyed information secret. It is also named as a non-disclosure agreement or NDA. NDA can be unilateral or mutual regarding obligations about the agreement. Mutual agreements are valid when the mutual transfer of information is in practice, but if only one party is conveying information the unilateral are more suitable options.
How to write a Confidentiality Agreement?
The confidentiality agreement has legal importance and can be treated legally that is why it provides a significant disincentive to any possible disclosure of information. NDAs are used on multiple perspectives, for example, while hiring a person or making a working agreement with a company. In every situation, it must be in written form and signed by all the parties included.
Here are a few points that must be considered while writing confidentiality agreement.
- The agreement should be written in standard format. Paragraphs must be numbered and each paragraph must consist of single terms. If the further detail of any term is required, use sub-paragraph indented under the main paragraph.
- Decide about the nature of agreement whether it is mutual or unilateral. Classify the parties involved in the agreement. All members that can access the confidential information must be mentioned clearly. Also, define the information that must be confidential and to what extent.
- Define and state the terms of the agreement and also set limits for them. Set up the duties and compulsions of the party receiving the confidential information. Define a time span for the validity of the agreement.
- Establish the ramifications or penalties that would be implemented in case of any potential disclosure of secret information. You can also add a minor point under a heading of miscellaneous.
- At the bottom of the agreement, all involved parties must put a signature and date of signing the agreement. Check all the legal requirements are fulfilled.
Create your own standard confidentiality agreement by using the following template,