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Corporate Law Videos - Indian Kaanoon - What is Non Disclosure Agreement?


A non-disclosure agreement is an agreement signed between two or more persons agreeing not to disclose the confidential information specified in the agreement. Such agreements are also known as Confidential Agreements, Confidential disclosure Agreement, Secrecy Agreement. Generally, non-disclosure agreements are signed between companies, individuals or entities but an employer can also enter into an NDA with his employee. NDA are of three types: Unilateral NDA: It involves two parties, out of which only one party discloses certain information to the other and expects that the information is prevented from any further disclosure. Bilateral NDA: It involves two parties; both the parties disclose information to each other, and both of them intend to protect the information from disclosing to another. E.g.- Joint Venture. Multilateral NDA: It involves three or more parties to the agreement, out of which one of the parties discloses the information to other parties and wishes to have that information protected from any further disclosures. These types of NDAs also eliminate the need for distinct unilateral or bilateral NDA.