What is a Non-Disclosure Agreement (NDA)?

A Non-Disclosure Agreement (NDA) is a legally binding contract establishing a confidential relationship. The parties signing the agreement agree that sensitive information they may obtain will not be made available to any others. In India, NDAs are governed by the Indian Contract Act, 1872.

Key Clauses to Watch Out For

When drafting or signing a Non-Disclosure Agreement (NDA) in India, pay close attention to:

  • Definition of Confidential Information: Must be explicit about what is covered to avoid disputes.
  • Obligations of the Receiving Party: Clearly outlines the duty to protect the information from unauthorized disclosure.
  • Term and Duration: How long the confidentiality obligations last (e.g., 2 years vs in perpetuity).

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Who Needs This Agreement?

Startups exploring partnerships, freelancers sharing proprietary processes, and founders pitching ideas to investors require a robust NDA to secure their intellectual property.

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