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Confidentiality Agreement

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CONFIDENTIALITY AGREEMENT

THIS CONFIDENTIALITY AGREEMENT ("the Agreement") dated this ________ day of ________________, ________.

BETWEEN:

____________________ of ____________________________________________________________
(the "Employer")

OF THE FIRST PART

- AND -

____________________ of ____________________________________________________________
(the "Employee")

OF THE SECOND PART

BACKGROUND:

  1. The Employee is currently or may be employed as an employee with the Employer for the position of: __________. In addition to this responsibility or position (the "Employment"), this Agreement also covers any position or responsibility now or later held with the Employer.
  2. The Employee will receive from the Employer, or develop on the behalf of the Employer, Confidential Information as a result of the Employment (the "Permitted Purpose").

IN CONSIDERATION OF and as a condition of the Employer employing the Employee and the Employer providing the Confidential Information to the Employee in addition to other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, the parties to this Agreement agree as follows:

  1. Confidential Information
  2. All written and oral information and materials disclosed or provided by the Employer to the Employee under this Agreement constitute Confidential Information regardless of whether such information was provided before or after the date of this Agreement or how it was provided to the Employee.
  3. The Employee acknowledges that in any position the Employee may hold, in and as a result of the Employee's employment by the Employer, the Employee will, or may, be making use of, acquiring or adding to information about certain matters and things which are confidential to the Employer and which information is the exclusive property of the Employer.
  4. 'Confidential Information' means all data and information relating to the business and management of the Employer, including but not limited to, the following:
    1. 'Business Operations' which includes internal personnel and financial information of the Employer, vendor names and other vendor information (including vendor characteristics, services and agreements), purchasing and internal cost information, internal services and operational manuals, external business contacts including those stored on social media accounts or other similar platforms or databases operated by the Employer, and the manner and methods of conducting the Employer's business;
    2. 'Customer Information' which includes names of customers of the Employer, their representatives, all customer contact information, contracts and their contents and parties, customer services, data provided by customers and the type, quantity and specifications of products and services purchased, leased, licensed or received by customers of the Employer;
    3. 'Intellectual Property' which includes information relating to the Employer's proprietary rights prior to any public disclosure of such information, including but not limited to the nature of the proprietary rights, production data, technical and engineering data, technical concepts, test data and test results, simulation results, the status and details of research and development of products and services, and information regarding acquiring, protecting, enforcing and licensing proprietary rights (including patents, copyrights and trade secrets);
    4. 'Service Information' which includes all data and information relating to the services provided by the Employer, including but not limited to, plans, schedules, manpower, inspection, and training information;
    5. 'Product Information' which includes all specifications for products of the Employer as well as work product resulting from or related to work or projects performed or to be performed for the Employer or for clients of the Employer, of any type or form in any stage of actual or anticipated research and development;
    6. 'Production Processes' which includes processes used in the creation, production and manufacturing of the work product of the Employer, including but not limited to, formulas, patterns, moulds, models, methods, techniques, specifications, processes, procedures, equipment, devices, programs, and designs;
    7. 'Accounting Information' which includes, without limitation, all financial statements, annual reports, balance sheets, company asset information, company liability information, revenue and expense reporting, profit and loss reporting, cash flow reporting, accounts receivable, accounts payable, inventory reporting, purchasing information and payroll information of the Employer;
    8. 'Marketing and Development Information' which includes marketing and development plans of the Employer, price and cost data, price and fee amounts, pricing and billing policies, quoting procedures, marketing techniques and methods of obtaining business, forecasts and forecast assumptions and volumes, and future plans and potential strategies of the Employer which have been or are being discussed;
    9. 'Computer Technology' which includes all scientific and technical information or material of the Employer, pertaining to any machine, appliance or process, including but not limited to, specifications, proposals, models, designs, formulas, test results and reports, analyses, simulation results, tables of operating conditions, materials, components, industrial skills, operating and testing procedures, shop practices, know-how and show-how;
    10. 'Proprietary Computer Code' which includes all sets of statements, instructions or programs of the Employer, whether in human readable or machine readable form, that are expressed, fixed, embodied or stored in any manner and that can be used directly or indirectly in a computer ('Computer Programs'); any report format, design or drawing created or produced by such Computer Programs; and all documentation, design specifications and charts, and operating procedures which support the Computer Programs; and
    11. Confidential Information will also include any information that has been disclosed by a third party to the Employer and is protected by a non-disclosure agreement entered into between the third party and the Employer.
  5. Confidential Information will not include the following information:
    1. Information that is generally known in the industry of the Employer;
    2. Information that is now or subsequently becomes generally available to the public through no wrongful act of the Employee;
    3. Information rightly in the possession of the Employee prior to receiving the Confidential Information from the Employer;
    4. Information that is independently created by the Employee without direct or indirect use of the Confidential Information; or
    5. Information that the Employee rightfully obtains from a third party who has the right to transfer or disclose it.
  6. Confidential Obligations
  7. Except as otherwise provided in this Agreement, the Employee must keep the Confidential Information confidential.
  8. Except as otherwise provided in this Agreement, the Confidential Information will remain the exclusive property of the Employer and will only be used by the Employee for the Permitted Purpose. The Employee will not use the Confidential Information for any purpose that might be directly or indirectly detrimental to the Employer or any associated affiliates or subsidiaries.
  9. The obligations to ensure and protect the confidentiality of the Confidential Information imposed on the Employee in this Agreement and any obligations to provide notice under this Agreement will survive the expiration or termination, as the case may be, of this Agreement and those obligations will last indefinitely.
  10. The Employee may disclose any of the Confidential Information:
    1. to such agents, representatives and advisors of the Employee that have a need to know for the Permitted Purpose provided that:
      1. the Employee has informed such personnel of the confidential nature of the Confidential Information;
      2. such personnel agree to be legally bound to the same burdens of confidentiality and non-use as the Employee;
      3. the Employee agrees to take all necessary steps to ensure that the terms of this Agreement are not violated by such personnel; and
      4. the Employee agrees to be responsible for and indemnify the Employer for any breach of this Agreement by their personnel.
    2. to a third party where the Employer has consented in writing to such disclosure; and
    3. to the extent required by law or by the request or requirement of any judicial, legislative, administrative or other governmental body.
  11. Avoiding Conflict of Opportunities
  12. It is understood and agreed that any business opportunity relating to or similar to the Employer's current or anticipated business opportunities coming to the attention of the Employee during the Employee's employment is an opportunity belonging to the Employer. Accordingly, the Employee will advise the Employer of the opportunity and cannot pursue the opportunity, directly or indirectly, without the written consent of the Employer.
  13. Without the written consent of the Employer, the Employee further agrees not to directly or indirectly, engage or participate in any other business activities which the Employer, in its reasonable discretion, determines to be in conflict with the best interests of the Employer.
  14. Ownership and Title
  15. The Employee acknowledges and agrees that all rights, title and interest in any Confidential Information will remain the exclusive property of the Employer. Accordingly, the Employee specifically agrees and acknowledges that the Employee will have no interest in the Confidential Information, including, without limitation, no interest in know-how, copyright, trade-mark or trade names, notwithstanding the fact that the Employee may have created or contributed to the creation of that Confidential Information.
  16. The Employee does hereby waive any moral rights that the Employee may have with respect to the Confidential Information.
  17. The Confidential Information will not include anything developed or produced by the Employee during the term of this Agreement, including but not limited to intellectual property, process, design, development, creation, research, invention, know-how, trade name, trade-mark or copyright that:
    1. was developed without the use of any equipment, supplies, facility or Confidential Information of the Employer;
    2. was developed entirely on the Employee's own time;
    3. does not relate to the actual business or reasonably anticipated business of the Employer;
    4. does not relate to the actual or demonstrably anticipated processes, research, or development of the Employer; and
    5. does not result from any work performed by the Employee for the Employer.
  18. The Employee agrees to immediately disclose to the Employer all Confidential Information developed in whole or in part by the Employee during the term of the Employment and to assign to the Employer any right, title or interest the Employee may have in the Confidential Information. The Employee agrees to execute any instruments and to do all other things reasonably requested by the Employer (both during and after the term of the Employment) in order to vest more fully in the Employer all ownership rights in those items transferred by the Employee to the Employer.
  19. Remedies
  20. The Employee agrees and acknowledges that the Confidential Information is of a proprietary and confidential nature and that any failure to maintain the confidentiality of the Confidential Information in breach of this Agreement cannot be reasonably or adequately compensated for in money damages and would cause irreparable injury to the Employer. Accordingly, the Employee agrees that the Employer is entitled to, in addition to all other rights and remedies available to it at law or in equity, an injunction restraining the Employee and any agents of the Employee, from directly or indirectly committing or engaging in any act restricted by this Agreement in relation to the Confidential Information.
  21. Return of Confidential Information
  22. The Employee agrees that, upon request of the Employer, or in the event that the Employee ceases to require use of the Confidential Information, or upon expiration or termination of this Agreement, or the expiration or termination of the Employment, the Employee will turn over to the Employer all documents, disks or other computer media, or other material in the possession or control of the Employee that:
    1. may contain or be derived from ideas, concepts, creations, or trade secrets and other proprietary and Confidential Information as defined in this Agreement; or
    2. is connected with or derived from the Employee's services to the Employer.
  23. Notices
  24. In the event that the Employee is required in a civil, criminal or regulatory proceeding to disclose any part of the Confidential Information, the Employee will give to the Employer prompt written notice of such request so the Employer may seek an appropriate remedy or alternatively to waive the Employee's compliance with the provisions of this Agreement in regards to the request.
  25. If the Employee loses or fails to maintain the confidentiality of any of the Confidential Information in breach of this Agreement, the Employee will immediately notify the Employer and take all reasonable steps necessary to retrieve the lost or improperly disclosed Confidential Information.
  26. Any notices or delivery required in this Agreement will be deemed completed when hand-delivered, delivered by agent, or seven days after being placed in the post, postage prepaid, to the parties at the addresses contained in this Agreement or as the parties may later designate in writing.
  27. The addresses for any notice to be delivered to any of the parties to this Agreement are as follows:
    1. Name: ____________________
      Address: ____________________________________________________________

    2. Name: ____________________
      Address: ____________________________________________________________

  28. Representations
  29. In providing the Confidential Information, the Employer makes no representations, either expressly or impliedly as to its adequacy, sufficiency, completeness, correctness or its lack of defect of any kind, including any patent or trade-mark infringement that may result from the use of such information.
  30. Termination
  31. This Agreement will automatically terminate on the date that the Employee's Employment with the Employer terminates or expires, as the case may be. Except as otherwise provided in this Agreement, all rights and obligations under this Agreement will terminate at that time.
  32. Assignment
  33. Except where a party has changed its corporate name or merged with another corporation, this Agreement may not be assigned or otherwise transferred by either party in whole or part without the prior written consent of the other party to this Agreement.
  34. Amendments
  35. This Agreement may only be amended or modified by a written instrument executed by both the Employer and the Employee.
  36. Governing Law
  37. This Agreement will be construed in accordance with and governed by the laws of the Province of Alberta.
  38. General Provisions
  39. Time is of the essence in this Agreement.
  40. This Agreement may be executed in counterpart.
  41. Headings are inserted for the convenience of the parties only and are not to be considered when interpreting this Agreement. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  42. The clauses, paragraphs, and subparagraphs contained in this Agreement are intended to be read and construed independently of each other. If any part of this Agreement is held to be invalid, this invalidity will not affect the operation of any other part of this Agreement.
  43. The Employee is liable for all costs, expenses and expenditures including, and without limitation, the complete legal costs incurred by the Employer in enforcing this Agreement as a result of any default of this Agreement by the Employee.
  44. The Employer and the Employee acknowledge that this Agreement is reasonable, valid and enforceable. However, if a court of competent jurisdiction finds any of the provisions of this Agreement to be too broad to be enforceable, it is the intention of the Employer and the Employee that such provision be reduced in scope by the court only to the extent deemed necessary by that court to render the provision reasonable and enforceable, bearing in mind that it is the intention of the Employee to give the Employer the broadest possible protection to maintain the confidentiality of the Confidential Information.
  45. No failure or delay by the Employer in exercising any power, right or privilege provided in this Agreement will operate as a waiver, nor will any single or partial exercise of such rights, powers or privileges preclude any further exercise of them or the exercise of any other right, power or privilege provided in this Agreement.
  46. This Agreement will inure to the benefit of and be binding upon the respective heirs, executors, administrators, successors and assigns, as the case may be, of the Employer and the Employee.
  47. This Agreement constitutes the entire agreement between the parties and there are no further items or provisions, either oral or otherwise.

IN WITNESS WHEREOF ____________________ and ____________________ have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.

_______________________________
WITNESS:  ______________________

__________________________(Employer)

Per:____________________________ (Seal)

_______________________________
WITNESS:  ______________________

_______________________________
______________________(Employee)

Last Updated September 23, 2026

Looking for a Confidentiality Agreement in French?

Use our Accord de Confidentialité.

What is a Confidentiality Agreement?

A Confidentiality Agreement is a legal document that helps protect private or sensitive business information. It can cover business plans, financial information, customer data, intellectual property, trade secrets, and operational details.

The disclosing party shares confidential information with the receiving party for a defined permitted purpose, who agrees to protect it and use it only for that purpose.

A Confidentiality Agreement can define the information covered, explain how it may be used or disclosed, and set out each party’s responsibilities if there is a breach.

Unilateral vs. bilateral Confidentiality Agreements

There are two main types of Confidentiality Agreements:

  • Unilateral (one-way) agreement: One party shares confidential information, while the other party agrees to protect it. For example, an employer may share non-public business information with an employee.

  • Bilateral (two-way) agreement: Both parties share confidential information and agree to protect each other’s information. These agreements are often used when parties are exploring a joint venture or partnership.

LawDepot’s Confidentiality Agreement is unilateral. If both parties need to share confidential information, you can create a second, reciprocal agreement with the parties' roles reversed.

Confidentiality Agreement vs. Non-Disclosure Agreement (NDA)

Confidentiality Agreements and Non-Disclosure Agreements both help protect sensitive information from unauthorized use or disclosure.

If you wish, you can style your agreement as a Non-Disclosure Agreement instead using LawDepot's Non-Disclosure Agreement product.

Key components of a Confidentiality Agreement

The key parts of a Confidentiality Agreement include:

Definition of confidential information

Agreements define the information that must remain confidential, such as:

  • Business plans
  • Financial data
  • Trade secrets
  • Technical materials
  • Customer information

An agreement can also clarify what information isn’t confidential if required. 

Confidentiality obligations

Agreements set out how the receiving party may use and protect confidential information. It can also address disclosures required by law or a court order.

Timeline

Terms for Confidentiality Agreements outline when confidentiality begins and how long it lasts. 

The agreement may also require confidential materials to be returned or destroyed when the arrangement ends.

Parties

The agreement identifies the parties and their roles, for example:

  • An employer sharing non-public business information with an existing employee who is taking on a new role

  • A client sharing sensitive information with an independent contractor providing a service

  • A business owner disclosing confidential financial and business information to a potential buyer of that business

  • An inventor needing to share their ideas with evaluators to get their project to the next step

  • A business sharing marketing strategies with a prospective new partner

What information can I use a Confidentiality Agreement for?

Disclosing parties can use a Confidentiality Agreement to protect sensitive business information shared with receiving parties. 

Client information

Client and customer information can be confidential business information. It may include client lists, contact details, account information, project details, service requirements, and non-public communications.

If this information includes personal employee information, employers must also comply with applicable privacy laws.

Trade secrets and intellectual property

Trade secrets may include confidential formulas, processes, methods, technical knowledge, or other information that gives a business a competitive advantage by remaining secret. 

Intellectual property can also include intangible assets such as copyrights, trademarks, and patents. 

Canada does not have one trade secret law that applies to every business. Trade secrets may be protected through confidentiality agreements and legal duties of confidence. The Canadian Intellectual Property Office recommends taking reasonable steps to keep valuable business information confidential.

Marketing plans

Marketing plans may include upcoming campaigns, target audiences, pricing strategies, product launches, and advertising materials that are not yet public, and could be damaging in the hands of competitors.

Business strategies

Business strategies may include financial information, growth plans, internal processes, supplier arrangements, operational data, and other non-public commercial information.

For employers, a Confidentiality Agreement does not replace an employer’s privacy obligations when collecting, using, or disclosing an employee’s personal information. These obligations are typically addressed through workplace privacy policies and applicable privacy legislation.

What laws govern Confidentiality Agreements in Canada?

Confidentiality Agreements are generally governed by the contract law of the province or territory named in the agreement. In Quebec, contracts are governed by the Civil Code of Québec.

Other laws may apply, depending on the type of information involved:

Trade secrets

Canada has no single trade secret law that applies to all businesses. Protection may come from contract law (such as a Confidentiality Agreement) or, failing that, the common-law duty of confidence (which holds that an obligation to maintain confidentiality exists even without a contract when a person knows, or should know, that information received was secret). 

The CIPO trade secret guidance recommends taking reasonable steps to keep trade secrets confidential.

Personal information

PIPEDA (the federal private-sector privacy law) may apply when personal information is shared during a business transaction. 

The due diligence phase of a business acquisition involves the prospective purchaser examining the business records of the target company to assess its value and those records the personal information of individuals, such as employees.

Under PIPEDA section 7.2, such information can be disclosed without the knowledge or consent of such individuals as long as the parties have an agreement that limits the recipient’s use and disclosure of the information, requires safeguards, and requires its return or destruction if the transaction does not proceed.

Please note: A Confidentiality Agreement does not replace privacy obligations under applicable federal, provincial, or territorial law but it can create additional obligations and set out appropriate legal remedies for breach of confidentiality.

What is considered confidential information in Canada?

In Canada, there is no single legal definition of confidential information. Generally, it is non-public information shared with the expectation that the recipient will keep it private.

Courts may consider whether the information was confidential, shared in circumstances creating an obligation of confidence, and used or disclosed without permission.

In Lac Minerals Ltd. v. International Corona Resources Ltd., Corona shared confidential geological data with Lac Minerals during merger discussions. Lac later used that information to acquire land Corona intended to buy. The Supreme Court of Canada found that Lac had breached its obligation of confidence.

Trade secrets have value because they are not publicly known. The CIPO trade secret guidance notes that businesses should take reasonable steps to protect trade secrets. A Confidentiality Agreement is one measure businesses can use to help protect confidential information.

Key benefits of using a Confidentiality Agreement

When you share sensitive information using a Confidentiality Agreement, it can help you:

  • Set clear expectations for how the receiving party may use and share the information.

  • Limit use of the information to an agreed purpose, such as evaluating a partnership or completing a project.

  • Create a written record of each party’s confidentiality responsibilities.

  • Support efforts to protect trade secrets and other non-public information.

  • Help parties handle personal information carefully when privacy laws apply.

A Confidentiality Agreement may help protect sensitive information, but its effect depends on its terms, the circumstances, and applicable law. 

Consider seeking legal advice for agreements involving more complex business, intellectual property, or privacy risks.

How to create a Confidentiality Agreement

You can create a Confidentiality Agreement with LawDepot by completing a guided questionnaire with easy-to-understand steps:

Step 1: Specify roles and relationships

Determine the relationship between the parties, such as seller/buyer, client/contractor, or inventor/evaluator, as this will determine the type of agreement your document reflects. 

Step 2: Provide confidentiality details

Specify which types of information need protection. This can be all shared information or specific details, such as customer data, intellectual property, or business operations.

Step 3: Input key party information

Provide the location and contact information for the parties. LawDepot uses the selected province or territory to customize your Confidentiality Agreement for the applicable jurisdiction.

The details you'll need to provide for each party  will depend on the agreement type. For example, if the agreement is for an employer and employee you'll include:

  • The employer’s name and address (the disclosing party)

  • The employee’s name and address (the receiving party)

Step 4: Set agreement terms

Choose the terms that will apply to the agreement, including how long the confidentiality obligations will last (i.e., indefinitely, a set number of years, or until a specific date).

You may also have the option to include restrictive clauses, such as:

  • Non-compete clause: Restricts the information recipient from starting or participating in a competing business for a set period, where appropriate.

  • Non-solicit clause: Restricts the information recipient from approaching or recruiting certain employees, contractors, clients, or customers.

These clauses differ from confidentiality obligations and may be subject to legal limitations. They should be reasonable for the circumstances.

Step 5: Add final details

Include any additional terms that are unique to your situation and not already covered in the questionnaire.

You can then add signing details to complete your document, such as:

  • When will the parties sign

  • Whether signatures will be witnessed

  • Any additional signing instructions

Step 6: Download, print, and sign

Once you complete the questionnaire, you can download and print your customized Confidentiality Agreement.

Each party should review the agreement carefully before signing. LawDepot’s eSign feature can also help the parties sign the document electronically.

Confidentiality Agreement FAQs

Are Confidentiality Agreements legal in Canada?

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Yes, a Confidentiality Agreement can be legally binding in Canada.

What if someone breaks the agreement?

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LawDepot’s Confidentiality Agreement includes a remedies clause stating that monetary damages may not adequately address a breach and that injunctive relief may be appropriate.

If the receiving party breaches the agreement, the disclosing party may send a Cease and Desist Letter and, if necessary, seek an injunction to stop further use or disclosure. 

In Lac Minerals v. Corona, the Supreme Court of Canada confirmed that a constructive trust may be available as a remedy for breach of confidence. Lac acquired property after using Corona’s confidential information. 

Although Lac held legal title to the property, the Court found that Corona was entitled to its benefit because Corona likely would have purchased it had Lac not misused the information. 

The Court therefore treated Lac as holding the property on trust for Corona and required it to transfer the property to Corona at the original purchase price.

Can the parties resolve a dispute without going to court?

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LawDepot’s Confidentiality Agreement includes an acknowledgement that monetary damages may not be an adequate remedy for a confidentiality breach. 

If a recipient does not stop the improper use or disclosure of confidential information after receiving a Cease and Desist Letter, the disclosing party may consider applying to court for an injunction. Courts may require strong evidence before granting an interim injunction, particularly when the other party has not yet had an opportunity to respond.

In serious circumstances, conduct related to threats or intimidation may also have consequences under section 422 of the Criminal Code.

How long can a Confidentiality Agreement last?

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Our Confidentiality Agreement can have a specific end date, a five-year limit, or be indefinite. 

How long an agreement lasts depends on the parties’ relationship or on whether the information enters the public domain. However, the most common period for an agreement to be in place is between one and five years. 

 Note that trade secrets must always be kept confidential indefinitely, since their value rests entirely on the information being kept out of the public domain.

What are non-compete and non-solicit clauses?

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Non-compete and non-solicit clauses are restrictive covenants that prohibit specific behaviour or actions by the receiving party.

  • A non-compete clause aims to limit a person’s ability to compete with a business for a period of time after the relationship ends. 

  • A non-solicit clause aims to limit a person from poaching a business’s employees, clients, or customers.

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