What is a Mutual and Unilateral Non-Disclosure Agreement (NDA)?
A Non-Disclosure Agreement (NDA) in India is a legally binding contract under the Indian Contract Act 1872 that restricts parties from sharing proprietary information, trade secrets, software code, financials, or customer records disclosed during business evaluations.
Enforceability in Indian Courts
Enforceable under Section 10 of the Indian Contract Act 1872. Indian courts routinely grant temporary and permanent injunctions against breach of confidentiality and unauthorized disclosure of trade secrets.
Execution on Stamp Paper
Executed on a non-judicial stamp paper of Rs 100 or Rs 200 depending on state stamp duty regulations.
Documents Needed to Execute This Mutual and Unilateral Non-Disclosure Agreement (NDA)
Keep the following self-attested documents ready before signing and attesting the agreement:
Essential Clauses in This Agreement Draft
Every clause is structured according to Indian statutory jurisprudence to safeguard the interests of both executing parties:
01.Definition of Confidential Information
Broadly captures code, roadmaps, customer lists, and financial figures.
02.Permitted Purpose
Restricts use strictly to the agreed evaluation without commercial exploitation.
03.Injunctive Relief
Acknowledges that monetary damages alone are insufficient and grants right to immediate court injunction.
Legal FAQs on Mutual and Unilateral Non-Disclosure Agreement (NDA)
Is an NDA signed on email or digital signature valid in India?
Yes, agreements signed via valid electronic signatures under the Information Technology Act 2000 are valid and admissible in Indian courts.
What is the standard duration of an NDA in India?
Most commercial NDAs in India specify confidentiality obligations lasting between 2 to 5 years from the date of disclosure.
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