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.

RELATED TERMS
  1. Non-Disclosure Agreement - NDA

    A legal contract between two or more parties that signifies a ...
  2. Trading Partner Agreement

    An agreement drawn up by two parties that have agreed to trade ...
  3. Option Agreement

    1. A signed agreement between an investor who is seeking to open ...
  4. Confidential Treatment Order - ...

    An order that provides confidential treatment for certain documents ...
  5. Non-Compete Agreement

    An agreement between two parties, typically an employee and employer, ...
  6. Zone Of Possible Agreement

    Not a physical place, the zone of possible agreement is considered ...
Related Articles
  1. Insights

    How NDAs Work and Why They're Important

    A non-disclosure agreement, or NDA, is a legal document that keeps the lid on sensitive information.
  2. Trading

    Defining Illegal Insider Trading

    The better you understand why insider trading can be criminal, the better you'll understand how the market works.
  3. Trading

    ISDA Master Agreement

    The ISDA Master Agreement is a document outlining the terms of an over-the-counter derivatives transaction between two parties. This document serves as a standard agreement in these transactions ...
  4. Investing

    The LLC Operating Agreement Template, And Why You Need It

    For some business owners, creating an LLC offers the best of both worlds. But your state's rules might not suit your needs. Hence the Operation Agreement.
  5. Investing

    Pfizer, Celgene Pursue Medivation (PFE, CELG)

    Sanofi isn't the only one interested in Medivation. Pfizer and Celgene also signed confidentiality agreements.
  6. Personal Finance

    Marriage, Divorce And The Dotted Line

    Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning?
  7. Personal Finance

    Create A Pain-Free Postnuptial Agreement

    This marital contract can underline your love for each other - not undermine it.
  8. Financial Advisor

    How to Bring Up a Prenup with Clients

    Prenups aren't just for the rich. Here's how to help clients agree to one if you think they'll benefit.
  9. Small Business

    Master The Art Of Negotiation

    Learn the strategies that will help you to come out on top in any negotiation.
  10. Small Business

    How Offtake Agreements Work

    An offtake agreement is a legal business agreement between a buyer and a seller.
RELATED FAQS
  1. A CFA Member or Candidate may be justified in disclosing confidential information ...

    The correct answer is: D) While acknowledging the importance of preserving confidentiality (and sensitivity of financial ... Read Answer >>
  2. Under what circumstances would someone enter into a repurchase agreement?

    Learn when investors want to enter into a repurchase agreement, such as to gain quick access to liquidity and enjoy flexibility ... Read Answer >>
  3. Which terms should be included in a partnership agreement?

    Understand what specific terms should be included in a business partnership agreement and how each affects the partners in ... Read Answer >>
  4. What is a "phishing scam" and how can they be avoided?

    The term phishing (as in fishing for confidential information) refers to a scam that fraudulently obtains and uses an individual's ... Read Answer >>
  5. What is each party's role in a reverse repurchase agreement?

    Learn about the role of each party in a reverse repurchase agreement transaction, and find out why it's different if the ... Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center