Confidentiality agreements are very useful to prevent unauthorized disclosures of information, but they have inherent limitations and risks. This confidentiality and non circumvention agreement template will help you understand how this agreement functions and why lawyers include certain terms.NDAs, or non-disclosure agreements, are legally enforceable contracts that create a confidential relationship between a person who has sensitive information. Capitalized terms used below that are defined in the Confidentiality Agreement are used with the meanings given such terms in the Confidentiality Agreement. Why Have a Written Confidentiality Agreement? • Confidentiality agreements are standard and an expected part of most negotiated deals. A confidentiality agreement serves as a legal contract that prohibits the use or sharing of confidential information. A confidentiality agreement comes into play when confidential information needs to be disclosed and protected. A sample employee agreement to protect confidential information.