A non-disclosure agreement or NDA is a legally binding agreement, signed between parties to protect against the leak of information. An Employee non-disclosure agreement is the one signed between the company and its employee to prevent any misuse or leak of information by the employee to any third party. NDAs are very common in the corporate setting where the information is protected and kept confidential within an organization.

There are mainly two types of Non-Disclosure agreements, namely:

1. Mutual and,
2. Unilateral.

Mutual agreements are those where both parties agree not to disclose the information to any third party. The mutual Non-disclosure agreement is commonly signed during Joint ventures when two corporations agree to work together.

A unilateral agreement is one, where only one party agrees not to disclose any of the internal information of a corporation to any third party. This type of Non-disclosure agreement is signed by the employee of a company while joining.

A major function of such non-disclosure agreements is to protect the sensitive information of a corporation that is not known to the general public. There is no restriction on what type of information is to be protected by such agreements. It is usually in the hands of the parties to decide what type of information would be protected by NDA.

Some of the information which is protected by a non-disclosure agreement are:

1. The details of the clients of a corporation
2. Sales and marketing strategies of an organization
3. Software information, passwords, and system specifications
4. The manufacturing technique of a corporation etc.

By signing a non-disclosure agreement the parties are bound to not disclose the information. If in case, such information is divulged to a third party then it amounts to a breach of contract and, the party who breached the contract would have to face legal consequences.

A non-disclosure agreement contains the following essential terms:

1. Scope of the agreement: this clause includes the scope of information that is to be protected and prevented from disclosure.
2. Party’s obligations under the non-disclosure agreement. The main body of the agreement lays down the legal obligation of the party.
3. The time period of the agreement is an essential part this states the time period for which the party cannot disclose the information and has to keep the information confidential.
4. Lastly the miscellaneous terms such as applicable law and the governing law of the agreement, limitation of liability, etc.  

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.