Confidentiality agreement

Also non-disclosure agreement (NDA). Agreement that is often concluded in connection with contract negotiations and prior to the conclusion of principal agreements and is intended to ensure the confidentiality of information, documentation, and know-how disclosed during contract negotiations. The confidentiality agreement normally contains an obligation on the part of the parties to place the duty of confidentiality on third parties, employees, and other persons to whom they disclose the aforementioned information. It is often agreed that payment of a contractual penalty is due in the event of breach.