Confidentiality clause is a contractual clause that requires one or both parties to protect sensitive information disclosed under the agreement. We take an indepth look at email disclaimers and show you when you need them and how to create a good one for your business.Use a non-disclosure agreement (NDA) to protect trade secrets or sensitive information from being revealed. Download an NDA template here. This confidentiality letter outlines the terms for sharing confidential information between two parties negotiating the potential acquisition of a business. Define Confidential Information: Specify what constitutes confidential information in the agreement. Be detailed to avoid ambiguity. A confidentiality agreement serves as a legal contract that prohibits the use or sharing of confidential information.