NDA – What It Covers
Learn what a Non-Disclosure Agreement (NDA) protects, its legal enforceability in India, and what to check before signing a confidentiality contract.
A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship. The parties signing agree that sensitive information they may obtain will not be made available to others.
Usually Covers
- Trade secrets
- Business plans
- Client information
- Financial information
- Source code
- Product designs
Usually Doesn't Cover
- Public information
- Information already known
- Independently developed information
Before Signing
- Read the confidentiality period.
- Check penalties and liquidated damages.
- Understand your obligations.
- Review the exceptions carefully.
Frequently Asked Questions
Can an NDA last forever?
It depends on the agreement and the nature of the trade secret, though perpetual NDAs face higher scrutiny.
Can employees sign NDAs?
Yes, it is standard practice in many industries.