The Basic Confidentiality Agreement serves as a fundamental legal instrument for protecting proprietary and sensitive information in business relationships. It is commonly used when parties need to share confidential information during business discussions, negotiations, or collaborations. This agreement, governed by U.S. federal and state laws, defines what constitutes confidential information, establishes the receiving party's obligations, and provides legal remedies in case of unauthorized disclosure. It's essential for maintaining competitive advantage and protecting intellectual property in various business contexts.
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Key Requirements PROMPT example:
Basic Confidentiality Agreement
"I need a Basic Confidentiality Agreement to protect proprietary software development information that will be shared with an external development contractor, with the agreement to last for 3 years starting from March 2025."
1. Parties: Identification of the disclosing and receiving parties
2. Background: Context and purpose of the confidentiality agreement
3. Definitions: Key terms including 'Confidential Information', 'Purpose', 'Representatives'
4. Confidentiality Obligations: Core obligations regarding use and protection of confidential information
5. Term and Termination: Duration of agreement and termination provisions
6. Return of Information: Obligations regarding return or destruction of confidential information
1. Specific Industry Compliance: Additional provisions for regulated industries such as healthcare (HIPAA) or financial services (GLBA)
2. International Transfer: Provisions for cross-border information sharing and compliance with international data protection laws
3. Non-Solicitation: Restrictions on soliciting employees or customers during and after the agreement term
1. Schedule 1 - Description of Confidential Information: Detailed list or categories of information covered by the agreement
2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information
3. Schedule 3 - Security Protocols: Specific procedures and requirements for handling and protecting confidential information
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