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A confidentiality statement can be useful in several situations. For instance, if your employees have access to important company information. Or if you discuss a business idea with an investor or business partner. And, if you share confidential company information with a potential buyer for your company.
What is a confidentiality statement?A confidentiality statement, also called a confidentiality agreement or clause or a non-disclosure agreement (NDA), is a binding contract. The other party agrees to keep certain information to themselves, and not disclose it. In other words, the other party must keep that information a secret. This enables you to share confidential information.
What does the NDA contain?A confidentiality statement contains the agreements between you and the other party. You need to lay down at least these points:
- parties: who are the parties involved
- purpose: the purpose of the collaboration between the parties involved
- definition: which information must remain confidential, and which is public
- permissions: to what purpose the parties involved may use the information
- duration: for how long the information must be kept confidential
- consequences: what happens if one of the parties breaches the agreement, for instance a fine or dismissal
- in case of a fine, the amount of the fine
- validation: signatures of the parties involved