Which agreement protects confidential information by prohibiting disclosure?

• A. Non-disclosure agreement
• B. Non-compete agreement
• C. Data sharing agreement
• D. Employment agreement

Answer: (A)

An agreement that prohibits sharing confidential information is designed to protect sensitive data by imposing a legal duty not to reveal it. This contract, called a non-disclosure agreement, defines what information is confidential, who may access it, and for how long the obligation lasts. It also covers allowed disclosures to authorized individuals and the consequences of breaking the promise, such as remedies or injunctive relief. In practice, NDAs are used whenever sensitive details—like security procedures, client lists, or proprietary methods—are exchanged, to keep information secret even after roles or projects end.

A non-compete agreement focuses on restricting work for competitors and is about limiting future employment or business activities, not about keeping information confidential. A data sharing agreement governs how data is exchanged between parties and may include privacy and handling terms, but it isn’t defined by a blanket prohibition on disclosure. An employment agreement covers general terms of employment and may include confidentiality clauses, but its primary purpose isn’t to prohibit disclosure of confidential information.