INTRODUCTION TO CONFIDENTIALITY AGREEMENT :
A confidentiality agreement is a legal document that is signed by two parties while or before agreeing to do any business. A confidentiality agreement or non-disclosure agreement is brought into the picture, generally when some company is working on a new project. When companies discuss ideas, designs of new products or involve someone in a sensitive matter, they opt for confidentiality or non-disclosure agreement.
By signing a confidentiality agreement, the two parties involved agree to keep every information related to the business classified. The confidentiality agreement is also known as a non-disclosure agreement, followed by which the companies pledge not to disclose any matter or information related to the business.
The confidentiality agreements are generally involved in sensitive matters. It can be signed between individuals, corporate companies, or even by the government. It is the legal proof of a promise of keeping matters confidential and not disclosing any information. The agreement is a standard protection measure for the people to keep things away from public knowledge.
ESSENTIAL ELEMENTS OF CONFIDENTIALITY AGREEMENT :
Confidentiality agreements can be edited and customized according to the need of the situation. But there a few standard critical elements of a confidentiality agreement:
- Name and Identification of the parties involved.
- Specific of confidentiality clauses.
- The obligation of the confidentiality agreement for the receiving end/party.
- Exceptions and exclusions clauses.
- Tenure of the confidentiality agreement
Every confidentiality agreement drafted needs to have these elements in it. The contract should state the names of the parties involved. The scope of the deal has to be laid out in crisp words. The clauses can be customized based on the situation in which the agreement signed. It needs to have the future scopes of confidentiality for the recipient. Also, the confidentiality agreement must state the term of the agreement, along with the exceptions to the clauses.
EXCLUSION IN CONFIDENTIALITY TREATMENT :
When two parties sign a non-disclosure agreement or confidentiality agreement, they get legally bounded by the law. But there are always exceptions, and at times exceptions are good.
Some of the exclusions are situations when the recipient is already in possession of the information mentioned in the confidentiality agreement. Any information, which recipient is aware of before signing the agreement should not be included. The agreement must have exclusion for law compliance. There should be an exclusion to the recipient to disclose matters and information on legal issues or required by the government or judicial courts.