What is a non disclosure agreement?

If you are a real estate expert, sharing specific details in the correct hands can fuel your greatest success. However, the competitive edge and strong reputation you've worked so hard to build could be lost if you shared the private information with the wrong people. Using a nondisclosure agreement (NDA) is one method to mitigate the risks associated with revealing private information. The non disclosure agreement meaning is having a contractual agreement that safeguards private information exchanged between a buyer and seller.

Get Free Estimate

Non Disclosure Agreement What is It?

It is a legal contract that ensures confidentiality between two or more parties. It prevents the disclosure of sensitive information to unauthorised persons or competitors. NDAs, you can use in business, employment, and legal matters to protect proprietary information.

1. Restricts employees, partners, or third parties from sharing confidential information.

2. Provides legal protection and remedies in case of a breach.

NDAs are enforceable under:

1. Indian Contract Act, 1872

2. Intellectual Property Laws

3. Information Technology Act, 2000

Non Disclosure Agreement Types

Let’s check out the different NDA types.

1. Unilateral NDA: One party shares confidential information, and the other is bound to keep it secret (e.g., employer-employee agreements).

2. Bilateral NDA (Mutual NDA): Both parties exchange confidential data and agree to protect it (e.g., joint ventures, business partnerships).

3. Multilateral NDA: Used when multiple parties are involved in a confidential agreement (e.g., consortiums, mergers).

This is all about what is a non disclosure agreement.

Get Your Non-Disclosure Documents Verified from Senior Lawyer at NoBroker.

Read more

How to Write an Agreement Between Two Parties?

A non disclosure agreement is a contract signed between two or more parties who agree to not disclose the confidential information. This agreement is signed to safeguard sensitive information which may hamper the business or transaction of any kind.

You now know what is NDA agreement, let us now know what are the elements included in the NDA document.

• Term of confidentiality

• Information of parties involved in the agreement

• Obligations for disclosure

• Remedies

• Use of the information

Also known as a confidentiality agreement, the Non Disclosure agreement comes under Indian Contract Act 1872. The types of NDA signed are:

• Clauses of unilateral confidentiality stating that one party has to keep the information protected. This kind of NDA usually exists between employers and employees

• There is another NDA agreement which is signed bilaterally. In this non disclosure agreement, the two parties can only share information with each other. 

Basically, non disclosure agreements are in place to protect sensitive information by following the right ways and legal framework. I hope this clarifies what is a non disclosure agreement.