Confidentiality Agreement Template | Awesome Sign

Confidentiality Agreement Template

A confidentiality agreement is a legal arrangement that requires one or more parties to keep secret or proprietary information private. A confidentiality agreement is frequently utilised when sensitive company information or proprietary knowledge must not be disclosed to the general public or rivals. A non-disclosure agreement (NDA) is a sort of secrecy contract.

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Confidentiality Agreement

Confidentiality Agreements or NDAs are must-have documents for most businesses, specifically firms
that need maximum privacy. Securing details regarding your company is important in many aspects.
The article comprises all details you need to create a strong confidentiality bond. Use them for
maximum assistance and the best outcomes. Read to the end and discover how you can build a
unique NDA for your firm.

Confidentiality Agreement: What Is It?

This document is a legal bond that binds one or more than one party to the confidentiality of
proprietary information. A confidentiality bond is usually used for sensitive data or proprietary
knowledge that must not be made readily available to the general public. NDA or non-disclosure
bonds are common types of confidentiality bonds.

You could use Awesome Sign's easy to use electronic signature to easily edit pdf template.

How a Confidentiality Agreement Works

A secrecy agreement is a conventional written agreement used to safeguard the proprietor
of an invention or new company concept. It is also a vital document between two firms
proposing a merger or a commercial transaction that must be kept secret from the public.
In the workplace, every individual with access to sensitive information (whether an employee
or a contractor for a company) is frequently obliged to sign a confidentiality agreement to
protect the company from the exposure of competitive information that might hurt the
company. If several parties will have access to sensitive information, the agreement might
be unilateral (signed by one party), bilateral (signed by both parties), or multilateral (signed by
both parties).

Purpose of Drafting a Confidentiality Agreement

A confidentiality bond is a commonly written document to shield the company or business from new
ideas and creative innovations. It is also vital paperwork drafted between companies or two
individuals that are working together to build something not known to the common public.
In the firm or company, any person who has access to this sensitive data must sign the NDA to
assure that no individual will leak information or breach without notice. The bond has multiple types.

Key Aspects

  • This bond is a lawful contract or document that safeguards the owner's exclusive or sensitive
    data from commoners.
  • Confidentiality bonds like the non-disclosure agreements help preserve valuable ideas of
    new firms, creations, intellectual possessions, or exclusive details from reaching the
    competitors or public.
  • Confidentiality is further necessary for dealing with mergers and partnerships, which involve

sharing market-related or private information.

Chief Components of a Confidentiality Agreement

You can alter these bonds depending on the specifications of the need; however, certain common
components are present in all. The bond will comprise the names of the parties involved,
information subject to confidentiality, the duration of the deed, and the duties of the individuals
agreeing to the agreement.

These are some of the exclusions that are not a part of NDAs:
  • The information is already known about the people going to sign or have signed the
  • Known to the public
  • Easily learned or grasped by the commoner

The bond also mentions the aspects that are open for disclosure and the details that must not be

The "confidential information exclusions" include categories of information that come under
nonconfidential data, enabling the receiving party to share the information without any worry. The
"receiving party duties" section mentions what the parties can do which the given information
delivered by the disclosing party.

The "miscellaneous" parts involve using simple language to cover the terms of the bond and other
critical matters. Those components might include details such as the state's rules that apply to the
agreement and the details regarding the party that pays the attorney fees while drafting the

Why Should You Consider a Confidentiality Agreement?

There are varied reasons to consider drafting and using a confidentiality agreement for your firm.
Some of these are:
  • Limiting competition from taking advantage.
    Confidentiality bonds assure that exclusive information like trade secrets and other tactics do not
    reach the competitive companies, media, or commoners. It is why confidentiality bonds are
    becoming popular in the upcoming industries, especially the IT sectors.

  • Explaining Duties.
    The bond helps build a secretive bond between the parties and clearly explains what it means. For
    instance, a confidentiality bond can assist employees in understanding how they must safeguard the
    details they learn from higher authorities or clients.

  • Sets Guidelines for Dealing with Information.
    Usually, when a party signs NDA, they start treating others' secretive information like their own.
    However, the setting is only applicable if the recipient sets certain standards for handling
    confidential data. These comprise limiting the access to proprietary data or opting for varied
    methods, like protecting files using passwords to sustain secrecy.

  • Guarding rights.
    In many regions comprising the United States, inventors lose patent rights when the invention's
    insights are publicly revealed.

  • Guarding Information during mergers.
    Confidentiality bonds can guard data about the company and purchases till the merger does not
    reach a final point. Likewise, these agreements also effectively safeguard your business's interests
    while joining other ventures.

  • Marking territorial boundaries for lawsuits.
    These bonds are legal documents; they can be profitably used as evidence for any legal case or

What Can Occur If You Fail to Use Confidentiality Agreements?

The worst possibility of not using a confidentiality agreement is that the company could lose all its
earnings, brand value, and further business openings from other profitable ideas or secretive
information. All of this can incur heavy losses and disturb individuals mentally.

Confidentiality agreements do not stop individuals from making profits from your plans or data.
However, it ensures you get legal compensation in such cases.

Confidentiality bonds can also prevent individuals or businesses from gaining profits via your data, as
they know it may cause legal actions against them. It includes financial fees and court orders to seize
the firm from using or applying the information. The name and demand of the entity that discloses
secretive information can immensely damage.

Taking the disclosing individual or firm to court is an option, but the lawsuit will be much lengthier
and more costly with no confidentiality agreements.

By now, the vitality of NDAs must be quite understandable for you. Use these vital tips and create an
effective confidentiality agreement for your business. Safeguard your vital information in all aspects
and make success easy.

Use Awesome Sign to get started, and sign your pdf documents effortlessly.

Template Preview

Agreement Template

Prepared for:


[Recipient Company]

Created by:


[Owner Company]

This Confidentiality Agreement (the “Agreement”) is made effective as of ____ /____ /______(MM.DD.YYYY),
____________________________ [Name]
_____________________________ [Email], Owner Of Confidential Information, of
______________________________ [Address]
, and

____________________________ [Name]
_____________________________ [Email], Owner Of Confidential Information, of
______________________________ [Address]

In this Agreement, the party who owns the Confidential Information will be referred to as “Owner,” and the party to whom the Confidential Information will be disclosed will be referred to as “Recipient.”

Owner is part of Owner Business Name. Recipient is part of Recipient Business Name.

Definition of Confidential Information:

Reasons for Disclosing Confidential Information:

The Owner requests and the Recipient agrees that the Recipient will protect the confidential material and information which may be disclosed between the Owner and the Recipient. Therefore, the parties agree to
the terms as follows:


The term “Confidential Information” is defined as any information or material which is the property of Owner, whether or not owned or developed by Owner, which is not generally known by anyone other than Owner, and which Recipient may obtain through any direct or indirect contact with Owner.

A. Confidential Information includes the following without limitation:

___    Business records and plans

___    Financial statements

___    Customer lists and records Trade secrets

___    Technical information Products

___    Inventions

___    Product design information

___     Product design information

___    Pricing structure

___    Discounts Costs

___     Computer programs and listings

___     code and/or object code

___    Source

___    Other proprietary information

___    Copyrights and other intellectual property

B. Confidential Information does not include (select all that apply):

___    Matters of public knowledge that result from disclosure by Owner

___    Information rightfully received by Recipient from a third party without a duty of confidentiality

___    rmation independently developed by Recipient

___    Information disclosed by operation of law

___    Information disclosed by Recipientwith the prior written consent of Owner and any other
information that both parties agree in writing is not confidential.


Recipientunderstands and acknowledges that the Confidential Information has been developed or obtained
by Owner through the contribution of time, effort, expense and creativity, and that the Confidential
Information is a valuable, asset of Owner which provides Owner with a significant advantage, therefore said Confidential Information needs to be protected from improper disclosure. In consideration for the disclosure
of the Confidential Information, Recipientagrees to not disclose and hold in confidence the Confidential
Information to any person or entity without the prior written consent of Owner. Additionally, Recipientagrees that:

No Copying/Modifying will Occur

Recipientwill not copy or modify any Confidential Information without the prior written consent of Owner.

No Disclosure to Employees

Recipient shall not disclose any Confidential Information to any employees of Recipient, except those
employees who are required to have the Confidential Information in order to perform their job duties in
connection with the limited purposes of this Agreement. Each permitted employee to whom Confidential
Information is disclosed will sign a nondisclosure agreement substantially the same as this Agreement
following the request of Owner.

Unauthorized Disclosure of Information

If it appears that Recipienthas disclosed (or has threatened to disclose) Confidential Information in violation
of this Agreement, Owner shall be legally entitled to an injunction to restrain Recipientfrom disclosing, in
whole or in part, the Confidential Information. Owner shall not be prohibited by this provision from pursuing
other remedies, including a claim for losses and damages.


Upon the written request of Owner, Recipient shall return to Owner all written materials containing the
Confidential Information. Recipient shall additionally deliver to Owner written statements signed by
Recipient certifying that all materials have been returned within .............. (**) days of receipt of the request.


Recipient acknowledges and agrees that the Confidential Information is provided on an AS IS basis. Owner


Owner does not represent or warrant that any product or business plans disclosed to Recipient will be marketed or carried out as disclosed, or at all. Any actions taken by Recipient in response to the disclosure
of the Confidential Information shall be solely at the risk of Recipient.


Recipient shall not acquire any intellectual property rights under this Agreement except the limited right to use set out above. Recipient acknowledges that, as between Owner and Recipient, the Confidential Information and all related copyrights and other intellectual property rights, are (and at all times will be) the property of Owner, even if suggestions, comments, and/or ideas made by Recipient are incorporated into
the Confidential Information or related materials during the period of this Agreement.


This Agreement sets forth the entire understanding of the parties regarding confidentiality. The obligations of confidentiality shall survive indefinitely from the date of disclosure of the Confidential Information or until the Confidential Information disclosed to Recipientis no longer confidential. Any amendments must be in writing and signed by both parties.

This Agreement shall be construed under the laws of the State of State name. This Agreement shall not be assignable by either party, and neither party may delegate its duties under this Agreement, without the prior written consent of the other party. The confidentiality provisions of this Agreement shall remain in full force and effect after the effective date of this Agreement.


Additional documents accompanying the Confidentiality Agreement should be marked as “confidential” before being given to a second party. If attaching additional documents, note them in the following format below.