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Confidentiality Agreement
A binding agreement that ensures all shared information during the M&A process remains confidential.
Implications
A legal contract that obligates one or more parties to keep certain information confidential, often used in business transactions, employment contracts, and partnerships to protect sensitive information.
Example
Example: A tech startup requires all employees to sign a confidentiality agreement to protect proprietary information, including software code and business strategies.
Related Terms
Different from non-compete agreements, which restrict employees from working with competitors, confidentiality agreements focus specifically on protecting sensitive information from disclosure.
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