What Is A Non Disclosure Agreement

What Is A Non-Disclosure Agreement?

What Is A Non Disclosure Agreement

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Trusting with your secrets has always been difficult for the humans in their normal lives as well as in professional. And when you are engaging with a property then almost everyone wants their information to be confidential that is why Non-disclosure agreement came into India through unknown sources.

The non-disclosure agreement’s history is unclear, and neither Franklin nor Edison have ever claimed to have invented it. However, we learn via a study of media databases that references to such agreements first appeared in the context of maritime law in the 1940s.

What is Non-Disclosure Agreement?

A non-disclosure agreement, or NDA for short,is a legally binding document that helps protect trade secrets and confidential information. In other words, it’s a fancy way of saying ” Don’t tell anyone what you saw here”.

Non-disclosure agreement meaning these agreements are used in negotiations, during the screening process of potential employees, and when working with consultants or contractors. If you are thinking of signing the confidentiality agreement, be sure to read it carefully and understand what you’re agreeing to. And if you have any kind of questions, don’t hesitate to ask another party involved in the agreement.

When should I use Non-Disclosure Agreement?

There are various situations where you may need to use a Non-Disclosure Agreement to safeguard the confidential information that you are sharing with another person. Some of the major situations are:

  • If you have a business where you need to share some information with your employees, partners, or any other person or organization, but you don’t want them to disclose the information publicly, then you should consider having a Non-Disclosure Agreement.
  • If you are a consultant and have access to the information of an organization but they don’t want you to make it public, you can use the Non-Disclosure Agreement.

Why is Non-Disclosure Agreement important?

When you’re an entrepreneur, your mind is always buzzing with new ideas. You have more ideas than you know what to do with, and you’re constantly trying to think of the next big thing. But before you start sharing your ideas with someone else, it’s important to protect them by signing a non-disclosure agreement (NDA). An NDA is a legal agreement between two or more parties that prohibits any confidential information from being shared.

There are plenty of benefits & purpose of Non-disclosure agreement:

  • It protects your ideas from being stolen.
  • It prevents someone from leaking your confidential information to the competition.
  • It shows that you take your business seriously and are committed to protecting your intellectual property.
  • It builds trust between you and your business partners.

What are the 5 key elements of a Non-Disclosure Agreement?

Whenever it is quoted as ‘key points’ then automatically it is understandable that we are talking about something very important. And every agreement does have some kind of key points , let us discuss the key points of non-disclosure agreement india:

  • The Confidential Information’s Summary
  • The Parties’ Duties And Obligations
  • A Confidentiality Agreement’s Exemptions
  • Term Of The Non-Disclosure Agreement
  • Repercussions of an NDA breach

How to write a Non-Disclosure Agreement?

Every document has a different way of presentation. When you create a Non-disclosure agreement, attentiveness is needed to be sure you know what you are getting yourself into. Now let us dive into the steps as how to make a non-disclosuret agreement:

  • Step 1: Explain the scope – What information is considered private? NDAs frequently include a grabbing clause that ensures any information that a “reasonable person” would assume should be kept private remains private.
  • Step 2: Outline each party’s responsibilities – What should the party receiving the information do to keep it private? How will they keep unauthorized individuals out?
  • Step 3: Take note of any potential exclusions – When is it appropriate for a party to share confidential information? What data is already excluded from the definition of private information? Legal proceedings and the use of contract workers are examples of situations in which disclosure may be required.
  • Step 4: Decide on a term – The disclosing parties may want the agreement to last indefinitely, but the receiving parties frequently want a time limit. When determining the term, the interests of both parties must be considered; there should be no room for doubt regarding the duration of confidentiality.
  • Step 5: Outline the consequences – Will a violation lead to the resignation of the employee or a business relationship? Can the offended party sue for a temporary restraining order or even damages?

Who is the disclosing party in a Non-Disclosure Agreement?

Anyone engaged in a non-disclosure agreement who provides sensitive information to another party is referred to as a disclosing party. Both parties agree to keep the data specified in the agreement within the applicability of the relationship and not to share it with anyone outside of the connection under any circumstances. The one receiving the information is called recipient. It’s not all sunshine and daisies when drafting a non-disclosure agreement. So think before you disclose any of your private information when making a NDA non-disclosure agreement with an organization.

Does a Non-Disclosure Agreement needs to be Notarized?

Notarization has always been a keen step to make your document look more professional legally. When you make any document which is related to law & order then getting notarized can help a person not to take any further steps to make it more legal. Their journey stops there.

Nothing in specific is written regarding getting the document notarized. It has always been the parties choice to get it notarized or not, however in India notarizing a confidentiality agreement Is not required.

You can go through our detailed blog on Stamp Paper Vs Notary for in-depth information on Notary,

Is a Non-Disclosure Agreement the same as a Confidentiality Agreement?

Many people think confidentiality and non-disclosure agreements are very much different but in actual they are the same as all they are used for to hide people’s secretive information which they don’t want the world to know about.

How long is your Non-Disclosure Agreement (NDA) applicable?

In very simple words, NDA non-disclosure agreements live up to 1 to 5 years. The lifespan of these agreements are of a few years though they can be extended (as per our knowledge). But it all relies on the specifics of the deal or the state of the market. It is in your best interests as an employer or business owner to uphold an NDA for as long as possible.

What happens if a party violates the terms of an NDA?

If any party violates the terms and conditions of a non-disclosure agreement, the other party may have legal recourse, such as seeking damages or an injunction. The specific consequences will depend on the terms of the agreement and the laws of the jurisdiction in which it is enforceable.

What is a Mutual Non-Disclosure Agreement?

Mutual non-disclosure agreement meaning where both parties agreed to keep each other’s information confidential. Whether it is address related, finances related or any other information. There are companies who make Non-disclosure agreements for employees to keep their information confidential from other workers.


Signing a non-disclosure agreement is no joke. You could lose a lot if you breach the agreement, so take your time and carefully read everything before signing on the dotted line. Just make sure you’re allowed to discuss the information you’re disclosing before you sign! Some agreements include a provision that forbids you from discussing the data even after the agreement has been halted.

Frequently Asked Questions (FAQs)

Who uses a non-disclosure agreement?

NDAs are commonly used by businesses, entrepreneurs, and individuals to protect sensitive information, trade secrets, and intellectual property.

How much does a Non-Disclosure Agreement cost?

The Stamp duty for non-disclosure agreement costing varies from State to State. But it generally ranges between 20/- to 100/-.

Is a non-disclosure agreement enforceable in court?

The enforceability of an NDA in court depends on the specific terms of the agreement and the laws of the jurisdiction in which it is being enforced. In general, NDAs are enforceable if they are properly executed and the confidential information is properly defined.

Where to get a Non-Disclosure Agreement?

The Confidentiality agreement can be procured by anywhere near court though mostly it is used by Companies. Many Online platforms also provide these services so what method you prefer most you can get from there.

Author Name

Adrika Mishra – Content Writer

Adrika Mishra is a Content Writer with a passion for writing crisps and well researched pieces. With a graduate degree in Mass Communication and over a year of hands-on experience in writing content for the web. Adrika is a person brimming with creative instincts. Constantly seeking to learn and grow, she uses writing as a medium to document her knowledge on topics she is passionate about. When not working, Adrika can be found grooving to music. Believing in the power of “The pen is mightier than the sword”, Adrika hopes to inspire and educate readers through her writing.