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confidentiality agreements or non-disclosure agreements NDAs are important whenever you are disclosing sensitive non-public and confidential information to a third party most often this occurs during the initial stages of determining whether a potential business arrangement will be acceptable to one or both parties so what are the important provisions to have in a confidentiality agreement first you need to determine whether one or both parties will be disclosing sensitive information and then have the agreement drafted to protect the information provided by either one or both of the disclosing parties you need to define the confidential information that is to be protected that would include any secret or proprietary information related to the business of the disclosing party but would not include information such as that which is publicly known or is already known to the receiving party or is obtained from a third party that does not have an obligation of confidentiality the next com