The purpose of a confidentiality agreement is to formalize the rights and obligations in the relationship between the signing parties as it relates to shared information. This can include restricting the uses of the confidential information by stipulating that its use be limited to the stated purpose of the agreement. Privacy legislation may also require that parties to a proposed transaction refrain from disclosing personal information unless they have entered into an agreement that binds the parties to use and disclose that information solely for purposes related to the transaction.