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A confidentiality agreement is a contract between individuals or companies that prevents the sharing of sensitive information, such as trade secrets or proprietary data, acquired during their relationship. It protects intellectual property by obligating the recipient to keep such information private. A confidentiality agreement is similar to a nondisclosure agreement (NDA), as both aim to safeguard proprietary information. However, NDAs may include additional provisions unrelated to confidentiality and are typically used in the context of transactions, while confidentiality agreements are more commonly associated with employment relationships.