The Confidential Disclosure Agreement (CDA) is a crucial legal instrument used when parties need to share sensitive business, technical, or proprietary information while maintaining its confidentiality. This document is particularly relevant in the Indian business context, where it must comply with the Indian Contract Act, 1872, and related legislation such as the Information Technology Act, 2000. It is commonly used during business negotiations, due diligence processes, joint ventures, or potential collaborations where parties need to exchange confidential information before finalizing a broader agreement. The CDA outlines specific obligations, limitations, and remedies available under Indian law, making it essential for protecting intellectual property and maintaining business confidentiality in various commercial relationships.
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1. Parties: Identifies and defines the disclosing and receiving parties to the agreement
2. Background: Explains the context and purpose for sharing confidential information
3. Definitions: Defines key terms including 'Confidential Information', 'Purpose', 'Representatives', and other relevant terms
4. Scope of Confidential Information: Clearly outlines what information is covered under the agreement
5. Obligations of Confidentiality: Details the receiving party's duties to maintain confidentiality and permitted uses of the information
6. Exclusions: Specifies information that falls outside the scope of confidentiality obligations
7. Term and Termination: Specifies duration of the agreement and confidentiality obligations
8. Return or Destruction of Confidential Information: Procedures for handling confidential information after termination
9. Remedies: Specifies available remedies in case of breach
10. Governing Law and Jurisdiction: Specifies Indian law as governing law and defines jurisdiction for disputes
1. Security Measures: Specific security protocols required for protecting confidential information, particularly relevant for technical or highly sensitive information
2. Non-Solicitation: Prevents receiving party from soliciting employees/clients, included when business relationship involves exposure to key personnel
3. Residual Rights: Addresses use of residual knowledge, typically included in technology-related agreements
4. Export Control: Required when confidential information may be subject to export control laws
5. Publicity: Restrictions on public announcements about the relationship, important for high-profile companies
6. Assignment: Rules about transferring rights under the agreement, important for corporate transactions
1. Schedule 1 - Description of Purpose: Detailed description of the purpose for which confidential information is being shared
2. Schedule 2 - Authorized Representatives: List of individuals authorized to receive and handle confidential information
3. Schedule 3 - Specific Information: Detailed list or categories of confidential information covered
4. Appendix A - Security Protocols: Specific security measures and protocols for handling confidential information
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