Also known as a non-disclosure agreement (NDA), a confidentiality agreement is a contract requiring one or both parties to keep certain information confidential. It may also restrict a party’s use of that information for a particular purpose.
A confidentiality agreement can be one-sided so that only one party is required to keep information confidential; or it can be used where both parties are sharing information with each other and want to restrict the other from disclosing or using that information otherwise than for a specified purpose.
Things to consider when drafting a Confidentiality Agreement
It is important to ensure that a detailed agreement, tailored to the specific circumstances, is drawn up to protect the disclosing party. A generic document is unlikely to be comprehensive enough or meet your specific requirements. Not having the right provisions could allow the recipient of the confidential information to disclose that information without penalty.
A good confidentiality agreement will be drafted with your business in mind. It should be tailored to protect the specific information you want to keep confidential. It should also make clear that there are penalties for breaching the terms and those penalties should include damages and maybe a court injunction to stop any proposed disclosure of confidential information.
At Farleys we take time to get to know our clients’ businesses. This means we can ensure all your needs are met by tailoring the confidentiality agreement to meet your individual set of circumstances. We act for a wide range of businesses and therefore have the experience required to provide you with advice suitable for your business.