Non Disclosure Agrement (NDA)

What is the purpose behind entering into a Non-Disclosure Agreement (NDA)??

When a party discloses any valuable information/data, in a physical or electronic form to the other party, to avoid any leakage of such valuable information/data and to transfer the same in a secured manner the Non-Disclosure Agreements are made. Thus, Non-Disclosure Agreements are very useful while sharing confidential information with the other party in a secured way so as to avoid any unlawful activity.

What is Confidential information in a NDA??

Confidential Information is the information that the disclosing party wants to keep out from sharing with any person other than the party or parties to the Non-Disclosure Agreement. All the data/information which is considered as ‘Confidential’ shall be included in the ‘Confidentiality Clause’ of the Non-Disclosure Agreement to avoid any kind of confusion or misuse of the data/information..

Who can enter into a Non Disclosure Agreement??

NDAs can be entered into by any individual, society, corporate bodies, and anyone who is referred to as a person or separate legal entity in the eyes of law, who is willing to disclose and/or receive some confidential information to and/or from the other party to the agreement..

What is the difference between an Agreement and a Non-Disclosure Agreement ??

All Non-Disclosure Agreements could be an Agreement but all agreements could not be a Non-Disclosure Agreement. An Agreement is formed when one party accepts the offer of the other party, and where both the parties agree to do or not to do the same thing in the same manner as agreed upon. Generally, in an agreement, there is no secrecy as such to be maintained between the parties as it is about the general transaction in a general sense. Whereas, a Non-Disclosure Agreement is an agreement where one party agrees to share some confidential information with the other party & the other party agrees not to disclose the same to any third party for a specified period of time..

Is registration of an NDA compulsory ??

If the document (instrument, agreement, or contract) is instituted for the transaction of immovable property, the need to Registering a document arises. In the case of a Non-Disclosure Agreement which is entered into purely for the exchange of the business information, it can be get printed on a non -judicial stamp paper of adequate value and get notarized. This will give enough validity to the agreement in the eyes of law. However, if you want to register the Non Disclosure agreement, it can be registered as per the Registration Act, 1908 by approaching the sub-registrar office of your city or district. Each state has separate rules for charges and the procedure of registration..