Necessary Clauses

• Both documents should be drafted by legal experts and contain specific language regarding terms of the contracts, to whom they apply, and when they expire. Additionally, a specific definition of what information is confidential must be included. All individuals who enter the contract must validate the privacy pledge by their signature.
  
  

Relationship Protection

• Specifically, a non-circumvention agreement protects concepts and ideas between two parties seeking to form a business deal. If the parties decide not to establish a joint venture, neither party can use the information provided by the other.
  
  

Breach of Contract

• As these contracts function to protect the privacy of trade secrets, invention designs, financial information and similar business plans, breaking a confidentiality agreement can be very damaging. A party who does not honor the terms of the contract may face monetary penalties and legal action.