The Procurement Glossary » Confidentiality

Confidentiality

Contracts & Legal

Definition

The obligation to protect and not disclose sensitive information shared under a business relationship.

Explanation

Confidentiality obligations, whether in an NDA or embedded in a contract, safeguard pricing, know-how and data. They define what is protected, permitted uses and duration, and survive termination for a set period.

Example

Confidentiality terms bar the supplier from revealing the buyer's volumes to competitors, surviving the contract by three years.

Related terms

• Non-Disclosure Agreement (NDA) — A contract in which parties agree to keep shared information confidential and not disclose it to others.
• Intellectual Property (IP) Rights — Legal rights over creations such as designs, software, patents and trademarks, and who owns them under a contract.
• Data Protection — Safeguarding personal and sensitive data handled in procurement, in line with privacy laws.
• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.

Frequently Asked Questions

What is Confidentiality?

The obligation to protect and not disclose sensitive information shared under a business relationship. Confidentiality obligations, whether in an NDA or embedded in a contract, safeguard pricing, know-how and data. They define what is protected, permitted uses and duration, and survive termination for a set period.

Can you give an example of Confidentiality?

Confidentiality terms bar the supplier from revealing the buyer's volumes to competitors, surviving the contract by three years.

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