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A confidentiality agreement is a contract between two parties that prevents the disclosure of sensitive information, such as trade secrets and proprietary data, learned during their relationship. It ensures that the recipient protects the disclosed intellectual property. While similar to a nondisclosure agreement (NDA), which also safeguards proprietary information, confidentiality agreements are broader. NDAs tend to be more specific, often including additional clauses unrelated to confidentiality, and are typically utilized in transactional contexts. In contrast, confidentiality agreements are more common in employment relationships.
