A confidentiality agreement, or a non-disclosure agreement (NDA), is a formal contract entered into by parties contemplating some form of business transaction in which sensitive data needs to be protected. In this agreement, the party disclosing information agrees to share certain details under the condition that the receiving party will maintain the confidentiality of the disclosed information.

These agreements are commonly employed to safeguard proprietary or sensitive information. The significance of using an NDA arises when the disclosed information holds substantial value for the disclosing party, and unauthorised access by competitors could have severe consequences. In such cases, relying solely on a trust-based relationship may prove insufficient, prompting businesses to seek the added security provided by a formal contract. Additionally, an NDA serves as a tangible indication of the seriousness and commitment of the parties involved.

It is crucial to assess the suitability of implementing an NDA well in advance, as waiting until after the information has been disclosed makes it significantly more challenging to retroactively protect it and prevent its dissemination to the public.

At AG Corporate Law, our team of solicitors offers guidance to both those disclosing information and those receiving the information to ensure the intricacies of NDAs meet requirements and are fully understood.Confidentiality and Non-Disclosure Agreements | AGCL

Whether incorporated into commercial contracts or as part of a business sale or purchase, our legal experts ensure that you enter business discussions and negotiations with confidence, knowing that your confidential information is effectively shielded.