Confidentiality & non-circumvention agreement

Written by jan simon
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Confidentiality & non-circumvention agreement
Non-disclosure and non-circumvention are pledges of privacy. (white folder (confidential) image by William Berry from

Confidentiality agreements are contracts. These agreements protect information from disclosure. When two or more parties agree to a confidentiality contract, also called a nondisclosure agreement, all individuals concerned consent to keep the sensitive information private. In business ventures, parties also employ non-circumvention agreements to protect privileged information.

Necessary Clauses

Both documents should be drafted by legal experts and contain specific language regarding terms of the contracts, to whom they apply, and when they expire. Additionally, a specific definition of what information is confidential must be included. All individuals who enter the contract must validate the privacy pledge by their signature.

Relationship Protection

Specifically, a non-circumvention agreement protects concepts and ideas between two parties seeking to form a business deal. If the parties decide not to establish a joint venture, neither party can use the information provided by the other.

Breach of Contract

As these contracts function to protect the privacy of trade secrets, invention designs, financial information and similar business plans, breaking a confidentiality agreement can be very damaging. A party who does not honour the terms of the contract may face monetary penalties and legal action.

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