Use LawDepot's Confidentiality Agreement template to create a unique contract for your situation. Simply answer the questions in our online form to generate a document that you can download, print, and sign. The steps to completing the form are as follows:
1. Provide party details
The details of your Confidentiality Agreement will vary depending on the relationship between the information provider and the recipient. As such, it's important to describe the parties to the contract, including their names, addresses, and relationship with each other. For example, Confidentiality Agreements are common between:
- Employers and their employees
- Clients and independent contractors
- Buyers and sellers of assets or businesses
- Product inventors and evaluators
If the agreement involves businesses, you can use the company name in place of an individual's name. Also, if the contract is between a buyer and seller, state whether the sale is of a business, company shares, or another asset.
Likewise, if the recipient of the confidential information is an employee or a contractor, you can include their job title and description. This makes clear why the individual has access to sensitive information.
A Confidentiality Agreement protects the disclosure of various types of information, such as:
- Accounting information: accounting procedures, payroll, software, reports, etc
- Business operations: employer and employee personnel data and any internal cost information and operational procedures
- Customer information: client lists, contracts, and business relationships
- Intellectual property: patents, trade secrets, proprietary software, copyrights, test data, computer technology, and scientific information
- Marketing information: campaigns, projects, and more
- Product and service information: procedures, packaging, equipment, and production techniques
- Proprietary computer technology: any information relating to unique computer applications, tools, or systems
If you selected the “other” type of agreement at the beginning of the questionnaire, describe in your own words how the recipient is permitted to use the confidential information.
Use specific wording if the recipient can only use the information for a particular purpose. Use general language for more general purposes.
4. Outline the terms of the agreement
State whether the Confidentiality Agreement will end on a specific date or continue indefinitely. Also, include whether there are non-compete or non-solicit clauses and when they end.
What is a non-compete clause?
A non-compete clause restricts the recipient from starting a competing company or disclosing confidential information to competitors. However, it’s important to note that it can’t prevent people from working for competitors.
What is a non-solicit clause?
Non-solicitation clauses are often included in Confidentiality Agreements among businesses during early discussions regarding transactions. This clause restricts the purchaser from hiring the employees of the seller.
Most non-solicit clauses last one or two years, but they can extend for longer periods as well. However, it’s important to note that a court may not uphold this clause if it deems the length of time unreasonably long for the particular situation.
5. Include any additional clauses
If there are any terms or conditions unique to your situation that LawDepot's Confidentiality Agreement template doesn't address, you can include them here.
6. Outline the signing details
State when the parties will sign the Confidentiality Agreement and if witnesses will be present.
Having a witness present for the signing helps reinforce the validity of the signatures on the contract. The witness can verify the identity of the signers and attest to their willingness to enter the agreement.