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Non disclosure Agreement

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Non-Disclosure Agreement

A Non-Disclosure Agreement is a legally binding confidential document signed between the parties which create the confidential relationship between the parties. It allows the parties to share their confidential information with each other for a certain purpose and also restrict to disclose the same with third party.

A Non-Disclosure Agreement is predominantly signed between two companies or entities (such as partnership firm or society or proprietorship firm etc.) who want to start a business together, which creates a confidential relationship between the parties.

What is the purpose of A Non-Disclosure Agreement?

The main purpose of NDA is to protect the sensitive information of the party which can be disclosed during commercial transactions such as trade secrets, patents, Intellectual Property, technology, know-how, and other such information which can hamper the rights of party. NDA also ensures that the other party doesn’t take undue advantage of the services or business transactions. As the competition is increasing so it becomes more difficult for companies to remain proactive to save and protect their important data even by taking extraordinary security measures. So the best way to save resources and time is to go for NDA.

How many parties are there in Non-Disclosure Agreement?

It depends on the number of parties who are disclosing the confidential information. There can be two parties or it can be one way too based on the business transactions.

Is there any specific law in India which governs a Non-Disclosure Agreement?

There is no particular statutory provision which for enforcement of NDA in India. It is generally governed by provisions of Indian Contract Act, 1872.

What are various types of A Non-Disclosure Agreement?

  • Unilateral Non-Disclosure Agreement: In this most frequently used type of NDA where only one party is restrained from disclosing any information shared by other party. It is widespread in companies who often use it to protect the information when hiring a new employee.
  • Bilateral Non-Disclosure Agreement: In this type of agreement both the parties are under obligation to not to disclose information to the third party. It is used between two businesses that are willing to work together and agree to share confidential information to each other.
  • Multilateral Non-Disclosure Agreement: In this type of agreement multiple parties pledged to not to disclose confidential information to any third party.

What are the services Lawyerinc offers for Non-Disclosure Agreement?

Our services:

Our comprehensive range of end-to-end solutions includes following:

  • End to end services for Non-Disclosure Agreement.
  • We have expertise in drafting Non-Disclosure Agreement.
  • We will get in touch with you through expertise in this field.
  • Our Experts shall guide you through the procedure and supply you with a detailed checklist of the required documents.
  • We shall verify the documents you provide.
  • Free consultation for any enquiry that you may have about Non-Disclosure Agreement.
  • You will get your Non-Disclosure Agreement drafting done without any hassles.

*Any fee, stamp duty and miscellaneous charges shall be payable extra.

Do contact us in case of any query related to Non-Disclosure Agreement and much more. To avail any of the above-stated services, kindly establish contact by posting a query at our site.

What information needs to contain in Non-Disclosure Agreement?

A Non-Disclosure Agreement should contain below mentioned information:

  • Definition: A Non-Disclosure Agreement should contain clear definition of confidential information as it needs to elaborate what kind of information to be covered as confidential information that cannot be disclosed by party.
  • Parties: A Non- disclosure Agreement should contain the parties to the agreement along with their correspondence addresses.
  • Duration or Term of Agreement: Agreement should define the term of the agreement as the duration for which information need to be kept confidential. In case of employment NDA it can be extended even after termination of employment contract.  
  • Legal Obligation of party:  Agreement must contain legal obligation or penalty to party in case confidential information is disclosed to third party. This may include monetary penalty or even sometime parties keep the right to start legal proceedings in case of breach of contract.  
  • Legislation and jurisdiction of Court: It is important to mention this clause so that party may approach to local courts in case of default make by party. Parties also need to mention jurisdiction of court to file a case.
  • Return of confidential information: Agreement needs to mention period when the confidential information to be returned or destroyed by the Recipient Party.
  • Non binding clause:  It depends on party if they want to keep the clause as it provides right to party to terminate the agreement at any point by following certain terms and conditions.   
  • Verification: Both the parties need to sign the loan agreement and verify the same in order to avoid any dispute in later stage. It is not obligatory to attest the same but some parties go for the same for better authentication.

Is oral agreement valid?

Although oral agreements are valid but agreements in written form are given more authenticity and are considered as legally valid. And especially Non-Disclosure Agreement needs to be in written form to avoid any encumbrances in future as it protects trademark, patent or any confidential information of the party. As well it avoids any kind of issues between the parties in future.

What is difference between a Non-Disclosure Agreement and Confidentiality Agreement?

Both Non-Disclosure Agreement and Confidentiality Agreement are generally used interchangeably but if we see them minutely there is a difference between both the terms.

A Confidential Agreement is used when there is a requirement of higher degree of secrecy. Non-disclosure means one must not disclose private information and Confidential meant that one needs to be sure that the information is kept secret by imposing restrictions on the use of confidential information and preventing theft by employees, protection of electronic databases by requiring sub-contractors to be bound by the agreement, etc. Moreover Confidentiality Agreement is used in employment or personal relations but Non-Disclosure Agreement is more used in third party or startup situations.

Frequently Asked Questions

  • 1. Are oral loan agreements are valid?

    Although oral agreements are valid but agreements in written form are given more authenticity and are considered as legally valid. As well it avoids any kind of issues between the parties in future.

  • 2. Can I file a Complaint if party breached NDA agreement?

    Yes, you can file a complaint in court or monetary penalty can be imposed as written in the agreement.

  • 3. Why to get NDA drafted through lawyerinc?

    Lawyerinc is a complete blend of professionals from across the globe. In –house team of lawyers and attorneys, CA and CS. All professional work together in Lawyerinc, providing you end to end solution. It guarantees delivery in the shortest and most reasonable rate in India. It enjoys a global presence

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