A confidentiality contract is a contract or a formal arrangement between two or more parties or persons sealing a number of confidential terms and conditions. These contracts are formed in the case where the involved parties do not wish to leak or share the details of the contract with any other third party or person besides themselves and this is the reason why such contracts are termed as ‘confidential’. A confidential contract is legally binding in nature and must be framed in a formal manner.
There are certain points that must be kept in mind while framing a confidentiality contract as any mistake could lead to a huge blunder considering the fact that these contracts are enforceable under law. The following points shall be useful:
- Any confidentiality contract must be written following a formal tone throughout and legal terms must be used to give it a better edge.
- The contract must mention the commencement and termination dates and must also cite the cases under which the contract can be called off or terminated by any of the involved parties.
- The details of the parties involved such as their names, address, contact details etc form an important and compulsory part of any confidentiality contract.
- The details of the contract must also be written down in a detailed manner and the information about the monetary considerations must also be mentioned.
- The most important part of such a contract is the part of the terms and conditions. These terms and conditions must be written down point wise and it should be clearly mentioned that the contract terms are confidential and must not be shared with any third party, group or person.
- In order to give a confirmation or agreement of the contract details, the parties must sign it after the part where the terms and conditions end.