Also known as a non-disclosure agreement, a confidentiality agreement is used to protect sensitive information from disclosure by others. Here’s what should go in one, and a free confidentiality agreement template for your business.
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Confidentiality agreement template – free Word download
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This sample confidentiality agreement has been produced by Farillio so we can’t take responsibility for its contents. We’d recommend you take professional advice before making any important decisions based on its contents.
What is a confidentiality agreement?
A confidentiality agreement is a legal document that sets out how information can be shared in confidence. This could be between potential partners and investors, advisors, contractors you work with, or people you employ in your business.
Let’s say you’re working on a new business idea and are speaking with a financial advisor, a confidentiality agreement can be put in place to protect your plans and keep your invention or design secret.
You might also find our guide to intellectual property useful.
What does confidential information cover?
‘Confidential’ means unpublished, not externally communicated outside the business, or otherwise not publicly or generally accessible information and materials.
This could include confidential proprietary information relating to your business, for example:
business activities
customers
clients
suppliers
plans and intentions
market opportunities
It may also include confidential operations, processes, product information, knowledge, technical information, designs, trade secrets, and software. Beyond that, it could cover information, findings, data, or analysis that’s come out of the confidential information.
How does it work?
The confidentiality agreement takes effect from the moment it’s signed by all parties. If one of the parties breaks the agreement, they could face legal action or fines.
Sometimes it might not be clear if something disclosed by the other party should be kept confidential. If that’s the case, it’s always a good idea to treat it as confidential unless it’s confirmed in writing by the owner of the information or materials.
What is an NDA?
An NDA, or non-disclosure agreement, is a type of confidentiality agreement.
There are two types of NDA: one-way and mutual. A one-way NDA is for when you’re the only one disclosing confidential information, while a mutual NDA is needed when both parties are sharing information.
Here’s just a few examples of when you might use an NDA:
How to use our confidentiality agreement template UK download
Our confidential agreement template, brought to you in collaboration with our partner Farillio, is an editable letter agreement in Microsoft Word format.
It’s ready to use for your business, you’ll just need to add in specific details:
Both you and the other parties will need to sign this document to agree to its terms. The signed agreement should then be returned to you.
The confidentiality agreement template outlines the purpose behind the agreement, along with the limitations on obligations. There are also sections on how you return the confidential information, as well as how to terminate the agreement if you or another party needs to.
This is a sample confidential agreement so you may want to get legal advice on drawing up an NDA template appropriate for your business. As business law is a complex and important topic to get right, be sure to take legal advice if you’re not sure of anything.
Legal templates provided by experts
Farillio is a business resource website that offers customisable, downloadable legal documents for small businesses.
Small businesses have legal responsibilities, but often don’t have the resources for an in-house legal team. Farillio’s resources are designed to help you plug that gap.
Have a look at more free guides designed in partnership with Farillio:
Do you have any questions about our confidentiality agreement template? Let us know in the comments.
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