A business confidentiality agreement (CA) can also go by various different names, such as non-disclosure agreement (NDA), confidential disclosure agreement (CDA), proprietary information agreement (PIA) or secrecy agreement (SA) – but it serves only one purpose, and that is to define the information that is to be shared between two or more parties. It protects that information by forbidding any disclosure of it from the other parties involved in the contract. Basically, everything that’s in the contract is a secret between the ones who signed, or their respective companies, and nobody else.
What’s the Use of the Business Confidential Agreement?
CAs have a large spectrum of applications, and are surprisingly common nowadays. One of the most common examples is the doctor-patient confidentiality agreement, which prevents your doctor from sharing with the
world any of the information about your diseases, treatment and mostly everything related to that. It’s designed to protect your privacy.
Fun fact: even librarians sign a CA in which they state they won’t share the information about the books any of their clients rent. Useful in certain cases, right?
When talking about business and CAs, the possibilities are limitless, but it always comes down to one party wanting to protect its information – an example might be when an individual or a group presents a business model to a potential funder, where the funder must not share that particular business model in the case of rejection.
Main Components of a Business Confidentiality Agreement
What a CA will look like is largely dependent on the contract details, but there are three main components every CA should have:
Definitions And Exclusions Of Confidential Information
Here you’d state exactly what it is that you want to be kept a secret and what is not, as well as in which scenarios is it ok to share the information and with whom. You have to be very specific and keep in mind various scenarios that could occur, as loopholes can easily be found with this matter.
Obligations from everyone that’s involved
This means specific proclamation of the parties that are enclosed by the contract – so who has to keep quiet and who doesn’t.
Meaning how long the contract will last or, if the exact period is unknown, then what would be the indicator that the CA is no longer valid or applicable.
As you have seen, writing CA’s is a delicate job with a lot of potential for some nitpick-loophole types of mistakes and errors when written by a non-professional. That’s where CA templates come in. You can use them as either an example or a template that you’ll edit to be representative of your specific and unique case for which you want it. You’ll be able to bypass the mentioned issues and errors, or find out about possible errors that you didn’t consider before. As CA’s are all about covering all the options, that can be a life-saver!
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