Confidentiality Agreement

AAA

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)".

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Trading Partner Agreement

    An agreement drawn up by two parties that have agreed to trade ...
  2. Non-Compete Agreement

    An agreement between two parties, typically an employee and employer, ...
  3. Gentleman's Agreement

    An unwritten agreement or transaction backed only by the integrity ...
  4. Material Insider Information

    Material information, about certain aspects of a company, that ...
  5. Disclosure

    The act of releasing all relevant information pertaining to a ...
  6. Non-Disclosure Agreement - NDA

    A legal contract between two or more parties that signifies a ...
Related Articles
  1. Want To Know What Disclosures Mean ... ...
    Personal Finance

    Want To Know What Disclosures Mean ... ...

  2. Buying Into Corporate Research & Development ...
    Markets

    Buying Into Corporate Research & Development ...

  3. How A Limited Government Affects A Country's ...
    Economics

    How A Limited Government Affects A Country's ...

  4. How Does Goodwill Affect Financial Statements?
    Investing Basics

    How Does Goodwill Affect Financial Statements?

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center