Non-disclosure clause

A non-disclosure clause, also called a confidentiality clause, is a term in a contract that requires one or both parties to keep specified information confidential and to use it only for permitted purposes. It is common in employment contracts, supply and licence agreements, and agreements for the purchase of a business.

How BC law treats it

A confidentiality clause is enforced as an ordinary contract term, and the common law action for breach of confidence may also be available. Remedies include damages and injunctions.

What it means for your business

Define what counts as confidential, how long the obligation lasts and what happens to the information when the relationship ends.

Risks and common mistakes

A clause that tries to cover all information, including what is public or already known, invites disputes over what is actually protected.

For the full explanation, see our entry on Non-disclosure agreement.

General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.