What is NDA (Non Disclosure agreement)


A legal obligation contract that defines confidentiality kinship is termed as a non disclosure agreement or NDA contract. Any entity who signs this agreement admits restriction to reveal the information to any other entity.

Therefore, the main objective of a non disclosure agreement is to cease the sharing of any sensitive or important information. With this intention, an unauthorized entity can cause threats or issue difficult situations in future to the firm.

The NDA contract is a common practice which the corporates use. Namely, this contract comes into practice with personnel, colleagues, and associates. The NDA contract which is used for the employees is usually termed as an employee non disclosure agreement.

If you are an entrepreneur and looking for investment for your startup then the NDA contract is very important. It confines the person with whom you shared your ideas to disclose it with any other entity. Therefore, it is necessary as anyone can steal your concept and there is no copyright for a business idea.

Benefits of Non-Disclosure Agreements

  • NDAs protect sensitive information
  • Likewise, to protect a new idea or service, NDA helps the founder to retain the rights to himself
  • Such confidential agreements clearly state which data is sensitive and should not be leaked
  • When one enters a business partnership, all the partners can protect their trade secrets
  • When one raises funds for a company, the information will be protected for patent registration  

What to Include in an NDA

  • The names of the parties to the agreement
  • An explanation of what represents the confidential data
  • Any exclusions from confidentiality
  • An assertion of the proper and suitable application of the data to be revealed
  • The time periods involved
  • Compensation amount 

Jurisdiction Clause in NDAs

It is essential for one to make sure to particularly state the city and the courts in the city. If a dispute takes place, a jurisdiction occurs. Failing to make these provisions might have a heavy effect on one’s pocket as the court battles could take place in different cities or even countries with added expenses.  

How to Register?

In accordance with the Registration Act (1908), a confidentiality agreement registry is to be done at the department of the Sub-Registrar office of the native city or district. If one is unable to do so, the agreement then can be written/printed on a legal stamp paper and get it, notary. 

Click here to get a Non-Disclosure Agreement, hassle-free.

But Lawyers are the Exception

In contrast, the only time one does not need to worry about signing an NDA is when he/she is talking with a lawyer about their product/ service. Although, one should make sure the advice was for legal advice. 

Types of Non-disclosure Agreements

Unilateral – Here, one body or individual which is usually the client or employee. They acknowledge not to disclose or communicate the important information with anyone else without their approval to prevent the information from additional exposure through the client or employee non-disclosure agreement.

Bilateral – In this, two parties or individuals (usually the client or employee) come into play and concur to keep the information to themselves and not reveal it to any other person without the authorized person or firm’s permission.

Multilateral – It deals with the involvement of three or more parties or individuals wherein one of the member shares sensitive information and the rest of the two members agree to not share or publish the information anywhere else. 


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