A Confidentiality Agreement (CA) is a legal contract between two or more parties that outlines confidential material, knowledge, or information that the parties want to share with one another for certain purposes, but also wants to restrict its access only to the parties to the contract. It is a contract through which the parties agree not to disclose information covered by the agreement.
These contracts warrant that certain type of information will remain confidential and will not be passed on by parties to the contract to any other party. It creates a confidential relationship between the parties to keep to themselves secret information and not allow it to reach other parties. A Confidentiality agreement protects the disclosure of non-public information. This information might pertain to business processes or new products.
Employees are often made to sign confidentiality agreements upon entering into employment to not disclose confidential information about the company to any outsider.