This is similar to a non-disclosure agreement and is used when negotiations start between parties. Such agreements are useful to have as they permit negotiations to take place with the comfort that anything said in the course of the negotiations or any secrets or material provided is done so on a confidential basis and cannot be disclosed to any third persons without consent. These agreements can also protect against poaching of employees and customers who come to light during the negotiations. Each party simply signs and keeps a copy for their own use.
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