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What is a confidentiality agreement?

As a new business owner in Georgia, you will likely run into many types of legal terms that you may not have heard before. However, it is important for you to come to know as many of them as possible in order to run your business smoothly. For example, you will likely be dealing with confidentiality agreements to some degree, so you should know how they function before diving in.

According to The Business Dictionary, a confidentiality agreement can also be known as a non-disclosure agreement, a secrecy agreement, a proprietary information agreement, or a confidential disclosure agreement. All of these terms mean the same thing: this agreement is a legal contract that makes sure two or more parties will be unable to share certain information with third parties. This can include confidential knowledge, trade secrets, materials or any type of information tied to the business that you and your partner (or partners) are working on.

These contracts can be used by parties that need to see and understand how certain processes of another business work, particularly before a contract is made. This is part of evaluating potential business relationships and does not necessarily have sway over the final decision of whether or not two parties will become business partners. The involved parties must all agree to the contract, as it is mutual. You may also want your employees to sign confidentiality agreements before signing on so they won't spread the company knowledge when they leave.

This is important for you as a business owner to understand, especially if there are sensitive processes, information or other knowledge involved in your business.

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