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Confidentiality Agreement guide



Thu 28 December 2023 Confidentiality Agreement guide

In today's competitive business world, protecting confidential information is crucial. Trade secrets, customer lists, marketing strategies, and other sensitive data can give a company a significant edge. This is where confidentiality agreements and non-disclosure agreements (NDAs) come in.

What is a confidentiality agreement?

A confidentiality agreement is a legally binding contract between two or more parties that outlines what information is considered confidential and restricts how it can be used or disclosed. NDAs are essentially a type of confidentiality agreement, focusing specifically on preventing the disclosure of confidential information to third parties.

What to include in an employee confidentiality agreement?

An employee confidentiality agreement typically outlines what information the employee considers confidential and the restrictions on its use and disclosure. Here are some specific categories you'll usually find:

Additional clauses to consider:

Will it be enforceable?

Employee confidentiality agreements are generally enforceable under English law, but due to the unequal bargaining position of the parties, under English law, the courts can interfere. Enforceability depends on careful and proportionate drafting which has taken into account :

Don’t over rely on your confidentiality agreements

Confidentiality agreements and NDAs can indeed create a false sense of security for several reasons:

Therefore, it's crucial to:


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