Contract Glossary
Confidentiality Agreement
Definition
A confidentiality agreement, also called an NDA, is a contract where one or both parties promise not to share certain information. Mutual NDAs go both ways. One-way NDAs protect just one side's secrets.
In Practice
Before you pitch your SaaS idea to a potential co-founder, you sign a mutual confidentiality agreement. You'll share your product roadmap and customer data; they'll share their proprietary algorithm. The agreement defines exactly what counts as 'confidential information,' how long the obligation lasts (typically 2-5 years), and what's excluded, like information that's already public or that the other party already knew.
Example Clause
Each Party acknowledges that in the course of this engagement, it may receive Confidential Information belonging to the other Party. Each Party agrees to (a) maintain such Confidential Information in strict confidence, (b) not disclose it to any third party without prior written consent, and (c) use it solely for the purposes contemplated by this Agreement. Upon termination, each Party shall promptly return or destroy all Confidential Information.
Common in these contract types
Related terms
Related contract clauses
Frequently asked questions
Create a contract with proper confidentiality agreement clauses
Generate a professional contract in minutes with all the essential clauses -- no legal expertise needed.
Create your contractThis content is for informational purposes only and does not constitute legal advice.