An example of a confidentiality clause gives you an overview of your confidentiality clause. A confidentiality clause (also known as a confidentiality agreement) is a legally binding contract in which an individual or company guarantees to treat certain data as a trade secret and not to disclose that information to others without adequate permission. It is important to distinguish between confidentiality clauses concerning workers and clauses between companies. Clauses that concern individuals are more likely to be considered trade restrictions and issues relating to time limits appear to be much more sensitive in these cases. Waiver is usually necessary, as it stipulates that failure to perform a proper offer in the agreement should not be prevented from waiving prior or subsequent rights.