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. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

  4. The Government And Risk: A Love-Hate ...
    Insurance

    The Government And Risk: A Love-Hate ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center