Are Non Disclosure Agreement Legally Binding In India

The confidentiality agreement usually depends on the employee`s profile when signing a confidentiality agreement with their company. A major difference that can be invoked between a basic agreement and a confidentiality agreement is that a basic agreement can be concluded by the relevant parties on paper, but for the addition of data protection and restrictions on the disclosure of the agreement, the same can be done on a stamp document with the registration of the contract under the declarant. This maintains the promise that one party has made to another and also creates fear in the minds of the parties that, if they violate the treaty, they must compensate the others. An NDA is a legally binding document or contract governed by the Indian Contracts Act 1872. It is recommended that the NDA be stamped to ensure additional validity and applicability. NDA with Witnesses has a twelve-year limitation period to assert a breach in court, while the statute of limitations for an agreement without a witness is six years. Through confidentiality agreements, the parties create a legally binding obligation to protect confidential information of the utmost importance from exploitation detrimental to the interests of the owners of such assets. Trade and commercial expansion also requires equal protection of rights at the widest possible level. A confidentiality agreement certainly does the same thing by protecting the valuable information of a company or individual from being disclosed or used against it to harm the primary party or owner of the information. NDA is the protector of creative ideas or models or any type of information that is beneficial or important to its owner. The confidentiality agreement requires a party to keep information confidential where such information has been provided directly by the disclosing party.

However, sometimes it is easier to get a simple agreement signed by the receiving party, who asks them to keep the information safe and secure. Some common issues addressed in an NDA are as follows: in India, a confidentiality agreement is governed and protected by the legislation known as the Indian Contract Act 1872. It is mandatory that an NDA be stamped to be legally applicable in India. Criminal action may also be brought against an employee in accordance with Section 406 of the Indian Penal Code, 1860 for criminal infidelity, if he/she participates in the abuse and disclosure of secret information protected by an NDA…

Comments are closed.