A Confidentiality Agreement is a legal contract between two or more parties that outlines how sensitive information will be shared and protected. This agreement ensures that any private data, such as business plans or trade secrets, remains confidential and is not disclosed to unauthorized individuals. It helps build trust between parties, whether they are individuals, companies, or organizations. When signing a Confidentiality Agreement, all parties agree to keep the information secret for a specified period. Violating this agreement can lead to legal consequences, including financial penalties. This is especially important in industries like technology or healthcare, where sensitive information is often involved.