Confidentiality agreement refers to the legal consensus arrived at by two parties related to each other via business terms and conditions. This agreement makes sure that the parties do not reveal information about each other during the course of their business relation. This assurance is made by strictly decoding the litigation that one party can slap on the violating party. The parties are free to arraign each other if the expected level of secrecy condition is not met. It is not only an external pressure on the parties to guard information but also an occupational duty of the parties to protect each other.
Due to revelation of a company’s strategies or work methods, the profit holding of the company may gradually slacken as the competitors or opponents in the market become alert and change their plans, thus creating a sticky situation for the original company in question. This type of a situation is detrimental for a company where a confidentiality document plays an indispensable role in fortifying the business empire.
The generic outline of a confidentiality agreement is provided below along with the specific functions each component of the article serves in maintaining the secrecy of the information: