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A confidentiality agreement is a binding agreement between individuals or companies that prevents the disclosure of confidential information, trade secrets, or documents learned during their relationship. It protects intellectual property and proprietary information from being disseminated by the recipient. While similar to a nondisclosure agreement (NDA), an NDA may include additional provisions unrelated to confidentiality issues. NDAs are typically used in transactions, while confidentiality agreements are more common in employment relationships.