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Non-Disclosure Agreement

A non-disclosure agreement is an agreement between two or more parties that creates a legal obligation on the receiver of the information to not disclose such information. NDA agreements are also referred to as confidentiality agreements. Whatever information is shared between the provider and the receiver is confidential and the receiver is bound by the agreement not to disclose any such information to the outside world.

Non- disclosure agreement create a sense of trust and faith between the two parties to enable ease of business and mutual trust between contracting parties. Typically, NDAs are made between an employer and an employee, a company and an independent contractor or two companies etc. to ensure that sensitive information of the parties is not disclosed to rival competitors etc. An NDA can be unilateral or bilateral, depending on the situation.

NDA’s are enforceable in courts. Depending on the terms of the agreement, monetary damages may or may not be sufficient remedy for breach by either party. The non-breaching party can be entitled to equitable relief, including injunction and specific performance, as a remedy for any such breach.

Law firms analyze the activities of their clients and recognizing the need for a Non-Disclosure Agreement, defining the Terms of the NDA, setting the terms of handling confidential information, describing how disputes are resolved and finalizing the NDA drafting.

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