1. Non Disclosure
Agreeement (NDA)
India’s #1 Incorporation Service – 125
Companies Incorporated in 2012 alone

2. NDA and its need
• One needs an NDA when is sharing any confidential
information or data with another party, an NDA helps one to
protect and safeguard the confidential information.
• A non disclosure agreement ensures that an employee does
not disclose any information obtained by him in capacity as an
employee. Whereas, a non compete agreement ensures that
an employee doesnt compete with the employer, by opening or
pursuing a similar business after the employee's term of
employment with the employer.

3. NDA and its need (contd.)
• An NDA can be obtained for different kinds of
confidential information, including sketches,
drawings, business plans and strategies, software
programs and other confidential information.
• The terms in a non-disclosure agreement can be
included in an employment contract as a clause.
• Multiple NDAs can be signed with the same person,
on different subjects. The process for each NDA
would remain the same.

4. Legal value of an NDA?
• An NDA is a binding legal contract between
the parties. If either of the parties to an NDA
violates the NDA, the other side is entitled to
damages in the form of compensation for the
loss caused

5. Violation of NDA by other party
• In case of violation of NDA by other party
following steps should be taken:
• First, one should send the other side a legal notice
clearly stating ones grievance and declare that unless
the issue is resolved, one will take legal action.
• After sending a legal notice, if one does not get any
result, then one needs to file a court case. But in most
cases, one gets relief after sending a legal notice.

6. NDA and legal formalities
• Ideally, an NDA should be on Stamp Paper, but
even if it is printed on the letter-head of your
Company / Firm, it is admissible in the court of law.
• An NDA does not have to be registered.
• Notarization is not legally necessary, however, if the
NDA is notarized, then in case a dispute arises with
regard to the NDA, it is easy to substantiate ones
case in a court of law. The costs for notarization
however vary from city to city.

7. Termination of NDA
• NDA is valid perpetually, until one decides to end it. One can
also mention the exact period for which one wants the NDA to
be valid while filling up the form on the website.
• Typically, every NDA contains a provision that even post the
termination of the NDA, the confidential information will
continue to be protected for a fixed period or forever. This
period can range from few months, to 1 or 2 years or more. It is
on the Client's choice. In the meantime, one should try to get
the information back from the party or insist that they destroy
the information.

8. Non-circumvent agreement v/s NDA
• A non circumvent agreement ensures that the role of
an intermediatory party is not surpassed by the
other two or more parties to an agreeement, in the
future. Whereas, a non disclosure agreement
ensures that a party does not disclose any
information to a third party.