Non-Disclosure Agreement Form

NDA is a legal contract between at least two parties that outlines confidential material. Generate an NDA designed by lawyers so that your information is secured with it!

  • Airtel
  • Flipkart
  • Dhani
  • Reliance Mart
  • Daikin
  • Rethinkux
  • Practo
  • Indigo
  • Cipla

A non-disclosure agreement Form as the name suggests is a contract that legally binds both the parties and confidential relationships and stops them from disclosing the shared information.

A Non- disclosure agreement Form is also called a confidentiality agreement as both the sighing parties agree that the sensitive information will not be disclosed to a third party and is confidential to them. 

A nondisclosure agreement form is used to maintain confidentiality and to have a competitive advantage. It helps businesses to keep their working projects, New products, and innovative ideas a secret and to save them from falling in hands of competitors. A non-disclosure agreement is a legally binding agreement that keeps a lid on sensitive information.

Non- disclosure agreements may be referred to alternatively as confidentiality agreements (CA), confidentiality statements, or confidentiality clauses, within a larger legal document. All of these terms cover legal contracts that define the disclosure, use, and protection of confidential information or trade secrets.

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How do Non-Disclosure Agreements work?

A Non-disclosure agreement form includes the exact nature of the confidential information that has to be secured. Without such a signed agreement, any information disclosed in trust can be used for malicious purposes or be made public accidentally. The repercussions of breaking the Non-Disclosure Agreement forms are always included in the agreement and may include damages in the form of lost profits or possibly criminal charges

What to Include in a Non-Disclosure Agreement Form?

Non- disclosure agreement forms are always customized as per the requirements but these are some essential points that must be added to the agreement-

  • Identification of the parties that are signing the agreement 
  • A precise definition of what is considered confidential under the agreement 
  • The clear reason as to why the information is shared and for what purpose 
  • An elaborated explanation as to how the shared information can and cannot be used 
  • Explicit information about the timeframe or the duration of the agreement

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Different Types of Non-Disclosure Agreements

The Terms and conditions of each Non-Disclosure Agreement are unique as per the requirements, as it depends on a number of factors. Primarily Non-Disclosure Agreement’s are of three types-

  1. Unilateral– A unilateral Non-Disclosure Agreement as the name suggests bounds one party to the agreement. For example an employee of the company who agrees not to reveal confidential information they learn during their service period. Contract and corporate researchers in the private sector and professors at research universities are sometimes required to sign Non-Disclosure Agreements that give the rights to any research they conduct with the business or university that supports them.
  1. Bilateral– Two-way, mutual, or bilateral Non-Disclosure Agreements as the name suggests involving two parties that disclose non-public information to the other. As such, both parties have an obligation to protect certain information. Bilateral Non-Disclosure Agreements are common when different businesses research the feasibility and profitability of a possible merger or joint venture.
  1. Multilateral–  In a multi-lateral Non-Disclosure Agreement, three or more parties are involved in the agreement. One or more parties disclose business information, while all receiving parties are obliged to protect the information.

Benefits of Non-disclosure Agreements

Here are some of the major benefits of a Non-Disclosure Agreement:

  1. Since the Non-Disclosure Agreement form is a legal document, it is of immense importance for any conflict that might arise in the future. Any party infringing the agreement would be legally liable to compensate for damages.
  2. Non-Disclosure Agreement form clearly states (in written format), anything that comes under the bracket of ‘confidential’, in the long run avoiding any ambiguity or loss of information.
  3. Non-Disclosure agreement form maintains the secrecy of the information shared between two or more parties and reduces the chances of important information going out of the organization.
  4. Overall, it protects disclosures of intellectual property (including trade secrets, proprietary information, and other confidential information), safeguarding the organization as a whole.

It is clear now that Non-disclosure agreement forms are an important legal framework used to protect sensitive and confidential information from being made available by the recipient of that information.

To know more about how Non-Disclosure Agreements Work read Are Non-Disclosure Agreements Legally Binding?

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Non-Disclosure Agreement Form

4.8 - 187 votes