Glossary
Non-Disclosure Agreement
Meaning & Definition
A Non-Disclosure Agreement (NDA) is a legally binding contract between an employer and an employee, or between two parties, that prohibits the sharing or misuse of confidential information. It helps protect sensitive business data, trade secrets, intellectual property, and other proprietary information during and after employment.
Importance of Non-Disclosure Agreement
- Protects confidential business information and trade secrets.
- Prevents unauthorized disclosure of sensitive company data.
- Builds trust between employers, employees, clients, and business partners.
- Safeguards intellectual property and competitive business advantages.
- Clearly defines the responsibilities and confidentiality obligations of all parties.
Legal Compliance / Policy / Regulation
A Non-Disclosure Agreement (NDA) is governed by the Indian Contract Act, 1872, provided it meets the legal requirements of a valid contract. In cases involving unauthorized access to or misuse of electronic data, relevant provisions of the Information Technology Act, 2000, may also apply.
