What is a confidentiality agreement? Simply put, it is an agreement that provides protection to one party from the harm or threat of damage or harm coming to third parties. A non-disclosure Agreement, also called a confidential agreement, confidential disclosure agreement or proprietary information agreement, is an agreement where one party (you) gives up the right of secrecy in exchange for the other party (clients, partners, stockholders etc) not knowing or gaining access to a particular business secrets or trade secrets of yours. This information is often used for business planning and investment strategies. Therefore, if you have any information about your clients that could put your clients in danger, you should make sure that your clients are informed about this information.
Why would anyone want to share their business secrets with someone they don’t know? For starters, keeping your clients in the dark about your business secrets will only put your clients in danger. Remember that criminals know how to get things done. With access to your business secrets, they can go through your records, scrutinize your assets, bank accounts in your name. Thus, it is best for you to keep them in the dark and not know what is going on with your business.
What is confidentiality? There is much information that you should know about what is confidentiality agreement before getting into the details. First off, you need to understand what a confidentiality agreement is and what it is not. In simple terms, this agreement outlines the rules and regulations on how information that was meant to be kept between you and your clients, will be handled between you and your clients. These agreements are legally-binding and must be implemented accordingly.
What is confidentiality? Confidentiality is an aspect that every person should consider when working with other people. This is to avoid harming or damaging another party’s information and properties that are considered as confidential by both of you. Basically, what is confidentiality agreement is about respecting the other party’s right to know the information that you have. By informing the person that what is confidential, the other party cannot make any use of the information that was disclosed to them.
How is what is confidentiality agreement applied? This agreement is mostly enforced during the times when you were working as a freelancer. As an independent contractor (that is, one that works without an employer), you are bound by contract to disclose your confidential information and property to the right person. The person that has the right to receive the information must not use it against you.
In the past, what is confidentiality agreement was not enforced, and the only way to ensure that confidential information was properly guarded was to hire your own lawyer to write the regulations and rules on how to handle your confidential information. This is a huge cost for a small business, since a lawyer is going to charge you quite expensive fees just to draft the rules and regulations. Moreover, it would be tedious for you since most lawyers are busy with cases that deal with the same law as yours. With this situation, a lot of business owners were afraid to share their confidential information and property to other businesses because they are worried that they might get into trouble. This resulted to the lack of proper communication between the two parties.
With the advent of the internet, what is confidentiality agreement can now be easily handled through email and chat. This means that you do not need a lawyer to draft the regulations on what is confidential and what is non-confidential. All you need to do is to ensure that you keep the computer of your client safe from any hacker who might get access to your electronic documents. In addition to this, you also need to inform your client about what is confidential and what is non-confidential.
Once you have prepared the details of what is confidentiality agreement, you need to ensure that your client understood what is being said. You need to make sure that he/she understands what is confidential, the penalty for breaching it, and what will happen if they are found to have done so. It is important that they are aware of the consequences so that they do not make any mistake that may cost them their job or worse. Hire a lawyer to help you draft what is confidentiality agreement for you. A good lawyer knows how to word the regulations to give the best protection to the owner of the information and what is confidential.