There are several situations where a Confidentiality Agreement is an important tool. LawDepot’s Confidentiality Agreement template can create an agreement between:
1. Employers and employees
Often, confidentiality obligations are part of an Employment Contract that an employee signs when they begin their position. The contract will outline the use of contact information, marketing techniques, Business Plans, and more.
However, if an existing employee takes on a role dealing with confidential information they didn’t have access to before, the employer may need them to complete a Confidentiality Agreement. The agreement will reinforce any actions an employer requires of their employees and what information they must keep confidential during and after employment.
2. Clients and contractors
Contractors may need access to sensitive information to complete a project for a client. A Confidentiality Agreement can ensure that details are kept private and confidential during and after a project’s completion. In addition, clients and contractors should always use Independent Contractor Agreements.
3. Sellers and buyers
Selling a business requires disclosing confidential business and financial information to a potential buyer so the buyer can make a more informed decision about the transaction. This is also known as due diligence. To protect these confidential materials, a seller should insist that a Confidentiality agreement be signed before any information is disclosed.
Once a Confidentiality Agreement is complete, both parties should write and sign a Letter of Intent as it establishes the good faith of both parties and sets out a structure for negotiations and a Business Purchase Agreement.
A Confidentiality Agreement can also be useful for other sales transactions requiring confidential disclosures as part of negotiations.
4. Inventors and evaluators
An inventor needs evaluators to get their project to the next step with the right funding and investors. To keep their intellectual property safe, they may use a Confidentiality Agreement to secure any information they share during this process.
5. Other parties
Other situations where a Confidentiality Agreement can be used include contracts between clients and suppliers, researchers and focus groups, therapists and group therapy, and more. LawDepot’s Confidentiality Agreement template allows you to customize your document to protect your private and confidential information easily.