Legal Definitions - confidentiality agreement

A confidentiality agreement, also known as a nondisclosure agreement, is a legal contract that requires a person to keep certain information private and not share it with others. This agreement is often used to protect trade secrets, which are valuable pieces of information that give a company a competitive advantage.

For example, if a company has developed a new product or process that they believe will be successful, they may require employees or contractors to sign a confidentiality agreement to prevent them from sharing this information with competitors. This can help the company maintain its competitive edge and protect its intellectual property.

Another example of a confidentiality agreement is when a company hires a beta-tester to try out a new software program before it is released to the public. The beta-tester may be required to sign a confidentiality agreement to prevent them from sharing any information about the program with others.

In summary, a confidentiality agreement is a legal contract that requires a person to keep certain information private and not share it with others. This is often used to protect trade secrets and intellectual property.