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Client confidentiality is the principle that an institution or individual should not reveal information about their clients to a third party without the consent of the client or a clear legal reason.he access to a client's data as provided by the institution in question is usually limited to law enforcement agencies and requires some legal procedures to be accomplished prior to such action (e.g.: court order issued, etc.).
DEFINITION of 'Confidentiality Agreement'. A legal agreement between two or more parties that is used to signify that a confidential relationship exists between the parties. confidentiality agreement is used in strategic meetings where various parties become privy to sensitive corporate information, which should not be made available to the general public or to various competitors. Also known as a non-disclosure agreement (NDA). Next Up.