A confidentiality agreement template is a legal document between two parties. The first party provides some information to the second party on the basis of this agreement letter. The central principle of this agreement is to make sure the receiving party does not disclose any bits of information that will be provided to them. The conformation of this agreement is the first step required in the process of disclosing any sort of confidential information. The confidential information provided to the other party could be about anything such as, a new project that a company is working on or information about some assets of the organization that are not known by anyone other than the employees. The agreement letter helps the first party to make sure that the information is in safe hands. The document basically locks the information between the two parties, which cannot be disclosed to any third party.
Composition of a Confidentiality Agreement
A confidentiality agreement may be one sided (signed by one party) or multilateral (signed by multiple parties) depending on the number of people that are aware of the confidential information. A confidential agreement is also known as a non-disclosure agreement. The confidentiality agreement is composed of the various factors that ensure that the information stays confined between the two parties. Some of the main factors to include in a confidentiality agreement are as follows:
1. The date on which the agreement is being signed.
2. General information about both the parties between which the agreement is taking place. Identify both the parties, the one providing the information and the one receiving it.
3. The terms and conditions which need to be acknowledged by the receiving party before signing the agreement form. This includes parts of the information that can be disclosed to the public.
4. The time period till which the agreement will be valid.
5. The consequences of disclosing the confidential agreement. This usually includes losing the job or having to pay a fine.
6. The signature bar for both the parties.
There are generally two copies of an agreement form; one is kept with the authority and the other is kept with the receiving party. The document acts as a legal document that ties both parties together for a certain time period. Once this document has been signed, both parties are legally bound together for a specific time period. The second party has to comply with all the terms mentioned in the agreement till the agreement is active.
Advantages of a Confidentiality Agreement
A confidentiality agreement form benefits both parties in multiple ways.
• It ensures that both the parties are aware of their respective responsibilities regarding the non-disclosable information.
• The authority or organization can use the confidentiality agreement document as a legitimate proof in case of any fraud or betrayal. The company can use hold the other party accountable for their actions and charge them.
• It helps an organization or business team to gate-guard their confidential information among its staff members. This information could include trade secrets, property information, or any other non-disclosable information.
Template For Confidentiality Agreement
www3.epa.gov