Confidentiality Agreement

DEFINITION of 'Confidentiality Agreement'

A legal agreement between two or more parties that is used to signify that a confidential relationship exists between the parties. A confidentiality agreement is used in strategic meetings where various parties become privy to sensitive corporate information, which should not be made available to the general public or to various competitors.

Also known as a "non-disclosure agreement (NDA)".

BREAKING DOWN 'Confidentiality Agreement'

A confidentiality agreement is a standard written agreement that is used when two companies start working together. Any individual that may have access to sensitive information is often required to sign a confidentiality agreement and it is often a clear indication that the information is private. This type of agreement is often used as an incentive to build trust between the parties and it is often used as clarification in the event of a legal battle.