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in m a transactions confidential and proprietary information such as financial information and important contracts often needs to be shared between buyers and sellers one common way to protect the secrecy of confidential information given to another party is through the use of a non-disclosure agreement which is sometimes also referred to as a confidentiality agreement by confidentiality agreement or ca is a legally binding contract between the seller and each prospective buyer that governs the sharing of confidential company information the confidential agreement is typically drafted by the sellers legal counsel and distributed to prospective buyers along with the teaser with the understanding that the receipt of more detailed information is conditioned on execution of the confidential agreement a typical confidentiality agreement includes provisions governing the following use of information this states that all information furnished by the seller whether oral or written is conside