What is a Confidentiality Agreement? Where is the Confidentiality Agreement Used?

What is a Confidentiality Agreement? Where is the Confidentiality Agreement Used?
What is a Confidentiality Agreement? Where is the Confidentiality Agreement Used?

Confidentiality Agreement is the contract that ensures that the information and document clearly stated to contain confidentiality regarding the project carried out or the business issue between the parties are not disclosed to any third party unless the relevant person's approval is obtained. With this contract, the limits and conditions of confidentiality can be determined.


With this contract, the parties are protected from the theft of projects and ideas, as well as from learning and expressing opinions on a project that is not yet completed and is being worked on.

Where is the Confidentiality Agreement Used?

The confidentiality agreement gives the parties control over the ideas and projects shared with another person or company. This contract, which is used for the protection of trade secrets;

  • for what purpose the information exchange will take place
  • how long information will be kept confidential
  • It includes provisions such that information can only be transmitted to third parties within the permitted scope and that this information can be returned or destroyed upon request by one of the parties.

The related party who violates the confidentiality agreement or does not work to protect it is punished with compensation. Therefore, the penal clause is the most important part of the confidentiality agreement. It is also important for the functioning of the contract that the amount of penal clause is a deterrent and is higher than the possible gain that the other party can gain by violating confidentiality.

After the confidentiality agreement is completed, it should be printed out and signed by both parties. Both parties must keep a copy of their confidentiality agreement.

Legal basis for the confidentiality agreement 

The laws of our country do not contain a law article regulating the Confidentiality Agreement. General contract provisions of the Turkish Code of Obligations, Labor Law and Commercial Code can be applied to the Confidentiality Agreement.

For a sample confidentiality agreement CLICK HERE


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