A Confidential Agreement Letter is an official document that outlines a term of confidentiality, or also known as a nondisclosure agreement. This type of letter sets out the terms and conditions between two parties with regards to their confidential exchange of information. It outlines any obligations they have to protect sensitive information and affirms those parties’ promises not to share confidential information. By signing this legally binding document, both parties agree to keep information discussed during the relationship strictly private, and agree to take all necessary steps to ensure its confidentiality.