Non Disclosure Agreement | NDA Sample | NDA Format


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Non-Disclosure Agreement (NDA):

Non-Disclosure Agreement (NDA)

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A non-disclosure agreement (NDA) also popularly known as secrecy agreement or confidentiality agreement is a legal contract between parties stating certain information is to be kept confidential and the extent to which its disclosure is restricted to third parties. A Non-Disclosure Agreement can be entered into with a company or a person. It includes business plans, strategies, trade secrets and other similar information as confidential. Non-Disclosure Agreement (NDA)

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Unilateral : A Unilateral NDA can be simply understood as one-way NDA which states that only one party discloses secret information to other party and requires that information to be protected from disclosure. Bilateral : A bilateral NDA involves two parties where both parties disclose their secret information to each other. Multilateral: An NDA is said to be multilateral when at least one of the parties discloses information to two or more parties and anticipates the protection of that information. Types of Non-Disclosure Agreement: In an NDA the party who provides the information which is to be kept confidential is called the disclosing party and the party who is provided with the information is called the receiving party. These are three types of NDAs :

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Elements in a Non-Disclosure Agreement Confidential information: The most important element of an NDA is the information which is to be kept confidential. Disclosure: There should be a clause which specifies the purpose for which such information is to be used and to whom it can be shared with. Term of contract : The agreement should specify the duration till which such information cannot be shared. Remedies: The remedies which can be resorted to in case of breach should be provided. Jurisdiction: The agreement should specify the courts of which city shall have jurisdiction or where such a case shall be adjudicated in case there is a dispute.

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Need for an expert to draft an NDA The main problem of an NDA is to ensure all important aspects have been covered or not . A poorly drafted NDA causes a lot of problems as the contents are not clear and could lead to huge trouble hence consulting an expert is better than copying one which may land you in trouble in future.

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