Protect your proprietary information with a professionally drafted Non-Disclosure Agreement (NDA) from our experienced lawyers, all at an affordable price. Before sharing any details about your business idea, make sure you’re fully safeguarded with this essential legal document—your NDA!
If you’re a business owner, you’re likely familiar with the term Non-Disclosure Agreement (NDA). An NDA is a legal contract designed to protect the confidentiality of information exchanged between parties. It ensures that anyone with access to your sensitive business data is legally bound to keep it confidential and not misuse or disclose it.
NDAs are especially important when sharing proprietary or confidential information—something entrepreneurs frequently need to do. Likewise, other businesses may require you to sign an NDA to protect their sensitive data. Understanding the key aspects and implications of an NDA is essential for any business owner.
A Non-Disclosure Agreement is one of the most commonly used legal documents by businesses, as companies routinely exchange a wide variety of confidential information on a large scale. Here are some key situations where an NDA would typically be required:
During discussions with the investors at the time of raising funds.
At the time of sharing confidential information with third parties for business partnerships
When you share your confidential and proprietary data with your employees or a freelancer.
Disclosure of information while taking professional consultancy.
Confidential business information—such as source code for a software company, customer data for an e-commerce platform, or details of a new invention—must be protected through a Non-Disclosure Agreement (NDA). An NDA ensures that sensitive information remains secure when shared with others.
Here are some key benefits of having an NDA in place:
Protection of Proprietary Information: Prevents unauthorized disclosure of your business’s confidential data, minimizing the risk of financial or reputational harm.
Clear Confidentiality Terms: Defines exactly what constitutes confidential information, ensuring both parties are aligned on their responsibilities from the outset.
Legally Enforceable: As a legally binding contract, an NDA provides a strong basis for legal recourse in the event of a breach or failure to comply.
Safeguards Intellectual Property: Helps protect your intellectual property from unauthorized use or disclosure.
Secures Third-Party Data: Ensures that any third-party information you handle is also protected from misuse.
An NDA is a straightforward yet powerful tool for safeguarding your valuable business assets and maintaining confidentiality.
An NDA does not cover information that is publicly available or already known to either party before the agreement is signed. It also excludes disclosures made by third parties who are not bound by confidentiality obligations. Furthermore, any information independently developed by the receiving party is not protected. These exclusions ensure that only genuinely confidential information is covered under the agreement.
Here are the essential clauses that should be included in every Non-Disclosure Agreement (NDA):
Definition of Confidential Information: Clearly specify what qualifies as confidential to avoid ambiguity or future disputes, usually with a broad scope to cover all proprietary details.
Exclusions from Confidentiality: Outline what is not considered confidential, such as publicly available information or details already known to either party before the agreement.
Permissible Disclosure: Identify the situations in which confidential information can be disclosed, including to employees, advisors, or other third parties, and outline any conditions or restrictions for such disclosures.
Term and Termination: State the duration of the confidentiality obligations, which could be for a specific period or indefinitely, depending on the nature of the information.
Governing Law and Jurisdiction: Determine the legal framework governing the agreement and the jurisdiction where any disputes will be resolved, particularly in cross-border agreements to avoid conflicts or confusion.
These clauses ensure that the NDA is comprehensive, legally enforceable, and provides both parties with a clear understanding of their rights and responsibilities.
Parties who are capable of entering into a contract as per the Indian Contract Act, 1872 can sign an NDA.
The experienced legal professionals at SubmitReturn.com can draft a fully customized NDA tailored to your unique business needs. Whether you need a new NDA created or require a review of one you’ve received from another party, our expert lawyers are ready to assist. Just share the purpose and context of your NDA, and we’ll take care of the rest—ensuring that your confidential information is securely protected by a legally sound agreement.
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