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. 

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