A Confidentiality Agreement is one of the most important legal documents that two parties can enter into. This type of document is necessary to protect both parties whenever one of the parties plans on disclosing any sort of propriety secret or information to the other party. A Confidentiality Agreement, also called a Non-Disclosure Agreement, serves as a legally binding contract between two parties to keep specific information disclosed by one party to the other on a confidential basis that is not disclosed to any other third parties.
A Confidentiality Agreement should always be drawn up before one party discloses any information, process, idea, new product or service to another party that is proprietary and not for public disclosure or use by the second party, without fair compensation to the owner of the proprietary information. There are numerous benefits associated with planning ahead and drawing up a Confidentiality Agreement before any information is traded or shared between two parties.
A Confidentiality Agreement protects the party providing secret or proprietary information from the risk that a third party will gain access to it or use it without their knowledge. Such an agreement provides the parties involved with the ability to sue for breach of contract if the secrets shared are divulged to third parties so that monetary damages may be sought.
Individuals or businesses also use a Confidentiality Agreement in order to protect their patent rights from being stolen. Such an agreement benefits both parties involved because it clearly states in writing any conditions or times when secrets or proprietary information disclosed can be shared or disclosed with others. This legal document also protects the party disclosing the information from having the other party involved take the information and use it for a purpose not approved by the first party.
What You Need to Know About Non-Disclosure Agreements
LegalVision.com.au has long been a trusted source for well-drafted agreements. Depending upon the complexity of the information to be shared and the level of confidentiality involved, a standard, basic Confidentiality Agreement template may be used or may be altered to include certain exemptions or provisions desired by either one or both parties entering into the agreement. Even before initial discussions begin between two parties in any business matter, contact LegalVision for guidance regarding use of a Confidentiality Agreement template that can prevent legal troubles down the road.
Learn more: Do You Know What Is a Distribution Agreement?