NDA Agreement

Confidential Information Definition

What is Confidential Information?

Confidential Information means any data, information, material, etc. that is specified and is of value to an individual or a business and involves a third-party such as the disclosing party. The confidential information can be protected by signing a non-disclosure agreement NDA.

Confidential Information Letter

If proprietary information is written on a paper, it must be labeled as ‘Confidential’ or any other suitable word by the disclosing party. A confidential information paper must be marked as confidential in order to protect its information from being leaked to the other parties.

If the confidential information is presented verbally, then a written document is presented by the disclosing party stating that the verbal information is confidential. The verbal information may be recorded with confidential disclaimer in order to protect the information being disclosed in that recording.

What Is Excluded from Confidential Information?

If the information is readily available to the public from other sources then it can not be included in confidential information letter or an NDA. This kind of information is also known as open-source information. Following are a few more types of confidential informations that may not be included in a confidential information letter:

The recipient is not obligated to abide by the below-mentioned data or information:

  • Any data or information that is already accessible to the general public;
  • Any data or information that is already available to the recipient via any other source;
  • Any data or information received legally from the disclosing party or any of its representatives;
  • Any data or information disclosed by the recipient after written permission from the disclosing party.

What Is a Business Confidentiality Agreement?

A Business Confidentiality Agreement, also known as a Non-disclosure Agreement (NDA), is a contractual agreement obliged by law wherein an individual or organization pledges not to disclose any sensitive or personal information or data without written permission, thereby holding it as a commerce or business secret.

You can use a Business Confidentiality Agreement, or an NDA, to keep your business’s online value, protect any exclusive information or data, IPs, tools, techniques or any other secrets from getting stolen.

What if an NDA is Breached?

If a non-disclosure agreement is breached then the party who breached the NDA may be sued legally. The leak of the confidential information may bring minor to major legal complications.


Yousaf Rana

It is my passion to write on such interesting topics which are being asked as questions by the community in social as well as web platforms. I'm a successful entrepreneur and mentoring people on entrepreneurial skills development on an international level.

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