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Which act governs Non-Disclosure Agreement?

Use of Non-Disclosure Agreements is governed by the Indian Contract Act 1872.

NDA Meaning?

Non-disclosure agreements also called for a Confidentiality agreement. The abbreviation used for Non-disclosure information is (NDA).

Non-Disclosure agreements or Confidentiality agreements are bonds or agreements entered by two or more parties/ persons in which all the parties or person entered approve that certain types of information that is disclosed between them will remain private/confidential.

A Non-Disclosure Agreement (NDA)makes a private relationship between the parties to protect any type of confidential information or trade secrets. In addition, a Non-Disclosure Agreement (NDA) protects non-public business information.

Such bonds or agreements are often used by a company or individual who has a secrecy to be maintained for their benefit. Non-Disclosure Agreement (NDA) acts as a protection against such information.

A signed Non-Disclosure agreement will be the best protection of the information in 3 ways

  • It stresses the significance of nondisclosure or confidentiality.
  • It acts as a warning to any party, who consider disclosing the information to others.
  • A non-disclosure agreement will act as a valid proof in a court of law in case of violation.

Who can enter nondisclosure agreement?

Non-disclosure agreements are commonly signed or entered between:

  • Two or more companies.
  • Two or more than two individuals.
  • Other entities (such as partnerships etc.) who are considering doing business with each other.
  • It is also likely for employees to sign a Non-Disclosure Agreement with an employer for not disclosing company-owned confidential information.

Types Of Non-Disclosure Agreement (NDA)

A non-disclosure agreement (NDA) may be categorized as

1. Unilateral

2. Bilateral

3. Multilateral

Clauses Or Issues In Non –Disclosure Agreement

The common issues included in a Non-Disclosure Agreement (NDA)inter-alia are

  • The description of what is to be kept confidential, i.e. the information to be held confidential.
  • The non-disclosure period i.e. the period if any till which the information has to be kept confidential.
  • The exclusions and inclusion from what must be kept confidential and what not.
  • Provisions confining the transfer of data in violation of laws regulation and national security.
  • The term (in years) the agreement is binding on all parties to it; consent to be obtained for ex-parte injunctive relief.
  • Description of the actions need to be done with the confidential materials upon agreement ending.

Advantages Of Non-Disclosure Agreement

Protecting Information

The most evident advantage of a Non-Disclosure Agreement (NDA) is protecting your information.

Disclose Information

NDA agreement allows settling as to on what information the parties to agreement can and cannot disclose information to others.

Confidential Info

NDA agreement allows parties to define as to what "confidential information" is so that it is clear to both parties throughout what is considered confidential and what subsequently cannot be disclosed.

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