What is Confidentiality Clause?

Risk: Medium. Depends on scope and duration.

Definition

A confidentiality clause requires you to keep certain information secret and not share it with third parties. These clauses are standard in most business contracts, but the scope matters enormously. A well-written confidentiality clause defines exactly what counts as confidential, sets a reasonable duration, and excludes information that is publicly available or independently developed. An overly broad clause can prevent you from discussing your own work experience, referencing past projects in your portfolio, or even telling prospective clients what kind of work you do. For example, if your freelance contract defines 'confidential information' as 'all information shared during the engagement,' that could include routine business conversations and publicly known details about the company. Watch for clauses with no expiration date, vague or all-encompassing definitions, and provisions that bar you from disclosing even the existence of the business relationship. These restrictions can limit your career and marketing long after the contract ends.

Related Terms

NDA (Non-Disclosure Agreement)Non-Solicitation ClauseIntellectual Property (IP) Assignment

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