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Overview of the Letter of confidentiality

Protect yourself and your business when sharing confidential information with another business or individual. Use this confidentiality letter template to impose restrictions on how your confidential information is used and shared. This basic letter of confidentiality contains everything needed when you need to quickly agree to an NDA and import the value of your confidential information on the other party.

Use this letter of confidentiality:

  • when you want to share confidential information with another business (or individual) using the most straightforward type of non-disclosure agreement (NDA)
  • when you first start sharing information, or if you frequently do so, and quickly need to agree an NDA to protect your information
  • to impress upon the other party the value of your confidential information
  • to impose restrictions on use and disclosure of the confidential information

This letter of confidentiality covers

  • definition of confidential information
  • protection of confidential information
  • what confidential information can be used for
  • who can receive confidential information
  • disclosures required by law
  • how long the information remains confidential

A letter of confidentiality is a basic and straightforward letter that acts as a non-disclosure agreement. The party disclosing confidential information imposes restrictions as to the use of this confidential information to the party receiving it.

When disclosing confidential information to a business or an individual, it's vital to protect your business by using either a letter of confidentiality or a confidentiality agreement. Having a letter of confidentiality signed by the party receiving the confidential information ensures the information you share will be protected and not disclosed.

This letter of confidentiality is a short and simple agreement, and as such does not incorporate the full range of provisions that are generally included in a longer form confidentiality agreement.

Almost any type of information can be confidential information. You can protect both commercial information and personal information. Examples of confidential information include trade secrets, patents, products designs, data bases, recipes, drawings, client's information or lists etc.

The letter of confidentiality prevents the party receiving confidential information from disclosing it and using it for anything outside the scope of the permitted purpose.

The obligations of confidentiality should not apply if:

  • The confidential information has become public knowledge; or
  • The confidential information was already known to the receiving party prior to its disclosure.

The information being shared will probably only need to remain confidential for a limited period and it is preferable to set out this period in the letter. How long depends on the sort of information being shared and why it's being shared. 6 months, 1 year or 2 years are reasonable periods of time.

This letter of confidentiality is governed by the law of England and Wales.

Other names for Letter of confidentiality

Confidentiality agreement letter.