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A confidentiality agreement is a contract between two parties that prevents the disclosure of sensitive information, such as documents or trade secrets acquired during their relationship. Its primary purpose is to protect intellectual property and proprietary information from being shared without consent. While confidentiality agreements and nondisclosure agreements (NDAs) serve similar protective roles, NDAs tend to be more specific, often including additional provisions beyond confidentiality. NDAs are typically used in transaction contexts, whereas confidentiality agreements are more common in employment relationships.
