A Confidentiality Agreement — General (also known as a Non-Disclosure Agreement or NDA) is a legally binding contract between two parties in which one party agrees to keep certain confidential information confidential. It is usually used when one party is sharing confidential information with another, such as when two companies are discussing a potential merger, or when an employee is given access to trade secrets. Confidentiality agreements typically outline the information that must remain confidential, how the information must be handled, and the consequences of a breach of the agreement. There are two main types of Confidentiality Agreement — General: unilateral and mutual. A unilateral agreement binds one party to keep the information confidential, while a mutual agreement binds both parties to keep the information confidential.