Free Confidentiality Agreement

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What type of situation is this Confidentiality Agreement to be used for?

Contract Work
Potential Sale
Other type

What Is a Confidentiality Agreement?

A Confidentiality Agreement, also known as a Non-Disclosure Agreement, is created by an individual or business (the disclosing party) to prevent an employee, consultant, or potential buyer (the receiving party) from revealing their private information.

The document:

  • Describes the knowledge, data, and processes under protection
  • Outlines the terms of confidentiality, including how long the information will remain private
  • Confirms the receiving party's agreement to the terms of the contract
  • May allow the disclosing party to take legal action if the receiving party breaches the contract
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Person wanting details

When Should I Use a Confidentiality Agreement?

You can use a Confidentiality Agreement to:

  • Protect your business information when hiring new employees
  • Keep your personal and business details private when using freelancers or independent contractors
  • Keep company information and purchase details secret during a business sale, partnership, or merger
  • Prevent your invention or proprietary idea from being shared by evaluators or investors

What Should I Include in a Confidentiality Agreement?

A Confidentiality Agreement includes important details such as:

  • The reason for a contract, such as employment or a potential sale
  • Categories of protected information, such as accounting data and customer records
  • Information on the parties signing the agreement
  • How long the obligations of non-disclosure will continue
  • Rules for non-competition and non-solicitation
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Safe, money, information, computer data

What Information Can Be Protected by a Confidentiality Agreement?

It's important to list the specific information you want to protect, including:

  • General business operations, such as purchasing and personnel records
  • Marketing and development, including promotional campaigns and pricing
  • Accounting records containing revenues, costs, and profit targets
  • Intellectual property, such as copyrights and trade secrets
  • Proprietary software and technology
  • Customer data, such as client lists and contracts
  • Product design and production processes
  • Customer service guidelines

What Is the Benefit of a Non-Compete Clause?

A non-compete clause provides additional protection for your business.

Use it to prevent the receiving party from:

  • Starting a company that will directly compete with your own
  • Working for or providing information to a business that directly competes with yours
  • Taking customers away from you
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