What is the purpose of Confidentiality Agreements?
One of the
basic purposes of confidentiality agreement is to protect the information from
getting into the wrong hands. This kind of agreement restricts the flow of data
and information to the third parties. The parties to the agreement remain loyal
with each other with strictly professional attitude once they execute this
agreement with each other.
There can
be various purposes for which parties enter into confidentiality agreements. In
most of the cases the data and information which the parties cannot share
elsewhere is specifically mentioned in the terms of confidentiality agreement. That
forms a relationship of trust between the parties and they are liable to keep
that trust intact as long as their relationship is governed by such agreement.
A purpose
of this kind of agreement is to make things clear to the parties beforehand.
Whenever parties have to share secret information then it is best to settle
things before moving ahead. The parties should know what to do and what not to
do so that problems do not arise at later stages. That makes things easier and
secure for all the parties that enter together in a confidentiality agreement
at the end of day.
One of the
purposes of confidentiality agreement is to improve the performance of parties
to the contract. When parties enter into a confidential agreement then targets
are achieved in the best possible manner. The performance of parties to the
confidential agreement increases many folds in the presence of such agreement. The
reason is that the parties trust each other and they move ahead with professional
attitude and enthusiasm to work in the best possible manner.
The parties
in a confidentiality agreement know their limits well. They do not try to
exceed their limits because they know consequences of that very well once an
agreement is there. The parties feel comfortable and relaxed when the agreement
is there. They do not have any fear of getting deceived from the other parties
in the agreement. In the end the venture or project which is carried out by the
parties together turns out to be a major success. The goals are achieved and
the future targets are set on the bases of improved performance by all the
parties.
