A confidentiality agreement is an agreement between two parties to avoid sharing confidential material or information. Employees should sign an NDA if they have sensitive information about the company. This ensures that the party does not steal data or use it without approval.
They are usually used if a company wants funding and investors. Therefore, the non- disclosure agreement protects information such as marketing strategies, sales plans, and potential customers.
The critical elements of an NDA are the parties' names, the period involved, definition of what is deemed to be confidential, and terms of the agreement.