Non-Disclosure Agreement
Protect your competitive edge, confidentiality and confidence while working with contractors, agencies or individuals by striking a Non-Disclosure agreement that binds sharing or distribution of information without permission of the client.
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Learn more about Non-Disclosure Agreement
An NDA is a confidentiality agreement in which the parties involved agree not to disclose the “Confidential Information” to which the Agreement applies. As a rule, it is signed or formalized by the parties who plan to work with each other or have started working with each other, and must transmit confidential information during the transaction. Hence, it is commonly used by companies, individuals, employers, and other organizations to protect their trade secrets and other important work details. A nondisclosure agreement is also known as a confidentiality agreement, a privacy agreement, or a secrecy agreement.
NDAs are usually of three types:
1. Unilateral NDA
It involves two parties, but only one party restricts the other party from further disclosure of their information, which is called “confidential information”.
2. Bilateral NDA
This is commonly known as the Mutual NDA. It involves two parties, and both parties restrict each other from further disseminating information to third parties.
3. Multilateral NDA
It involves three or more parties, of which at least one party discloses information to other parties and intends to protect it from further dissemination. Instead of two or three unilateral or bilateral nondisclosure agreements, one multilateral nondisclosure agreement can be concluded.
The confidentiality clause in the NDA clearly defines what exactly is a “confidential matter” in respect of which the NDA is concluded.
This helps to maintain maximum secrecy between the parties, binding them legally through the various provisions contained in the Non-Disclosure Agreement. This prevents the receiving party from disclosing confidential information.
The various clauses of the Non-Disclosure Agreement also indicate the period until which the party is obliged to maintain confidentiality. This period may extend beyond the validity period of the NDA itself.
A nondisclosure agreement is legally binding and thus the party in breach of the agreement will be legally liable for damages to the aggrieved party (which is basically the disclosing party).
The dispute can be referred to the Arbitrator or even to the court, if required by the degree of violation. In this way, the owners of confidential information receive assistance as they have made efforts to protect the transmitted confidential information under the NDA.
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