Q: What are the uses of non disclosure agreement ?

Ans: NDAs are commonly used in the following scenarios:

When employers are looking to prevent their employees from defecting and selling their confidential information to their rivals or opponents. 

When parties are considering entering into a licensing discussion or agreement with each other. 

Distribution negotiations as well as between start-ups and companies who wish to gauge the potential possibility of future commercial joint ventures.

When talking to potential investors; and

During mergers and acquisitions

Comments

Post a Comment

Popular posts from this blog

Q: Elaborate section 22 of Indian Contract Act ?

Ans: Section 22 of Indian Contract Act mentions about the mistake of fact.  Contract caused by mistake of one party as to matter of fact.—A contract is not voidable merely because it was caused by one of the parties to it being under a mistake as to a matter of fact. Then there is the other type of mistake, a mistake of fact. This happens when both the parties miscomprehend each other leaving them at a crossroads. Such a mistake can be because of an error in understanding, or ignorance or omission etc. Here a mistake is never intentional but it is an innocent overlooking. These mistakes can either be unilateral or bilateral. Bilateral Mistake:  When both parties of a contract have committed  a mistake of fact which is crucial to the agreement, such a mistake is what we call a bilateral mistake. Here both the parties have not consented to the same thing in the same sense, which is the definition of consent. Since there is an absence of consent altogether the agreement is...
Read more

Q: Elaborate section 21 of Indian Contract Act ?

Ans :  Effect of mistakes as to law —A contract is not voidable because it was caused by a mistake as to any law in force in India; but a mistake as to a law not in force in India and has the same effect as a mistake of fact.    Illustration:  Shyam entered into an agreement of non disclosure agreement with Ram having the belief that he would disclose the confidential clause of non disclosure agreement later and would give the payment for the disclosure and Shyam thought that it was lawful , so due to mistake of law by Shyam, the agreement will not be void and the Shyam will be bound to maintain the confidentiality clause of the agreement.   However, ignorance of a foreign law is not given a similar treatment. Ignorance of the foreign law is rendered some leeway, the parties are not expected to know foreign legal provisions as well as their meaning. So a mistake of foreign law is in fact treated as a mistake of fact under the Indian Contract Act.
Read more

Q: What is non disclosure agreement ?

Ans: Section 2(e) of Indian Contract Act,  1872:  According to section 2(e) of Indian Contract Act,  1872, every promise and every set of promises, forming the consideration for each other, is an agreement.  E.g., If Ram proposes Shyam to start the business of car manufacturing with compliance of non disclosure clause of car design, it is a proposal.  If Shyam accepts the proposal of Ram, it is acceptance which is also a promise and if shyam promises  to do or not to do something ,it is a consideration.   So, if both Ram and Shyam forms consideration for each other with the confidentiality clause in the agreement, it is a non disclosure agreement. 
Read more