What Is a Confidentiality Agreement and How Does It Work?

A confidentiality agreement is a legal contract that requires one or more parties to keep secret or proprietary information confidential. When sensitive company information or private expertise is not to be shared with the general public or rivals, a confidentiality agreement is frequently utilized. A non-disclosure agreement (NDA) is a specific kind of confidentiality contract.
A confidentiality agreement differs from a waiver of confidentiality, in which the parties involved relinquish confidentiality assurances.

A confidentiality agreement is a promise not to reveal a secret or secret in exchange for something of value.

Confidentiality agreements are commonly used in legal, science, healthcare, and business settings to protect research-and-development, inventions, client or patient information, etc.

Such agreements are legally enforceable and sometimes required by law. The penalties for breaching an agreement are usually specified in the agreement itself but sometimes laws may add to the penalties. For example, a hospital employment may sign a confidentiality agreement not to disclose any information about a patient, and HIPAA also forbids disclosing certain information.