This blog explains why notarising an NDA Agreement is necessary.

A Nondisclosure Agreement (NDA) is a contract where the parties have agreed not to reveal the “Confidential Information” covered by the contract. An NDA agreement is typically signed by two parties who intend to work together in the future and wish to preserve the sensitive information discussed during the conversations.

It’s also established between parties who ultimately choose to collaborate and don’t want any information shared with a third party. As a result, it is signed by businesses, people, employers, employees (known as an NDA for employees), and other entities.

The Confidentiality Agreement, Secrecy Agreement, and Proprietary Information Agreement are all terms used to describe a nondisclosure agreement.

Why Is An NDA Required?

Client names, confidential information, business-related details, and trade secrets are protected under NDAs. No business owner needs their proprietary information or customer lists to be discovered by rivals, and no employer wants their sensitive information to be leaked to a third party. One could use a nondisclosure agreement (NDA) to avoid such leaks of private information. If a party has not executed an NDA, a court will not be able to grant relief for sensitive information disclosure.

NDAs are very important for start-ups in situations like

1. Introducing and sharing an idea or business concept with a possible investor, collaborator, or reseller;
2. When dealing with a patient from another organization or company that may have direct exposure to your sensitive information;
3. When providing employees with access to your company’s confidentiality in the course of the contract;
4. When demonstrating your product/service to a potential client.

What Are The Different Kinds Of NDAs?

There are three types of NDA:

1. Non Binding NDA – It involves two participants, but only one of them exposes sensitive information to another and wishes to keep it private.
2. Mutual NDA is also known as Bilateral NDA – It contains two people, each of whom discloses information to another and intends to keep that knowledge from being shared further.
3. Multilateral NDA – It requires three or even more parties to sign the agreement, with at least one party disclosing information to others and intending to keep it from spreading further. A single Multilateral NDA might be used instead of two or three individual or bilaterally NDAs. The Notary for NDA Agreement is necessary as all the Business have to follow certain Criteria.

NDA Signature

What happens if you sign the NDA in person versus signing it electronically?

The In-Person Signing Of An NDA

When signing an NDA in person, remember that in-person eyewitnesses are required. In-person agreements have become unusual due to COVID-19. Digital records are becoming more popular.

Using An Electronic Signature To Sign An NDA

Thanks to technological advancements, we can now sign all our documents online, and e-signatures are just as legitimate as in-person identities today. Another advantage of becoming digital is the high security of electronic signatures. In addition, as soon as the agreements are signed, all parties receive digital versions, making it extremely easy to locate the NDA when needed.

Notarising A Nondisclosure Agreement

The participants usually notarise the nondisclosure contract. The role of a notary is that of an eyewitness; a notarisation indicates that the notary has witnessed firsthand the parties entering into the contract. In excluding an eyewitness, a party could make up a variety of explanations to claim that the contract’s provisions do not obligate him.

He could claim, for instance, that he never entered a contract, that the handwriting is not his, and that his identity was falsified. While there is no legal obligation in India for notarising agreements, it will help prevent parties from refusing to execute (sign) the contract personally.

Is It Necessary To Have An NDA Notarized?

In India, obtaining an NDA notarised is not required by law. A notary only certifies that the participants signed the NDA; they do not examine or evaluate it.

Here are some interesting facts about notarisation.

1. In India, notarisation is not required by law.
2. A registrar does not examine or Evaluate the NDA before signing it. Therefore, they have no authority to compel any signature parties to comply with the agreement.
3. A solicitor does not give the parties any advice. (Before entering an agreement, we recommend that you read it well.)
4. A notarised agreement does not guarantee that the signing parties know the NDA’s contents.
5. Some say that a notary stamp makes the procedure more complicated and time-consuming.

Identification And Embossing

When we accept an NDA, we do so with the understanding that the document is valuable and can be enforceable in court. To have the NDA enforced, it must be shown in court as proof that two (or more) participants signed it. Some processes must be followed to submit the NDA to the court.

Stamping

A council tax is a procedural design requirement for the NDA to be acceptable in court. The council tax rate on a nondisclosure contract will vary by state, but in most Indian states, it should be between 20 and 100 rupees.

Application (Optional)

A nondisclosure contract can be registered under the Registration Act of 1908 by going to the office of the county or city’s Sub-Registrar. The cost of writing an NDA differs from region to region. Registration is a great way to verify the legitimacy of a document’s contents, although it is not legally required. However, registering an NDA can be exceedingly irritating due to differing state legislation.

Conclusion:-

Every company has its plans, business operations, strategies, proposals, know-how, proprietary information, and other confidential material developed through strenuous effort. It must store this stuff privately and limit its distribution to third parties. Only a qualified attorney can help you write an appropriate NDA, which can assist your firm in securing its critical information.

As a result, hiring a lawyer rather than obtaining an online draft is recommended. Is it necessary to get a nondisclosure agreement notarised?

Finally, notarising a nondisclosure contract is not required by law in India, and you have the option of not having it notarised.

Everything is fine. As a witness, a notary establishes that the signature parties were of sound mind when they signed the agreement. Only a court of law may enforce the NDA, not a notary.

Read More:-

• What Happens if NDA Is Violated?
• Non Disclosure Agreement for Employees
• Situations That Require a Non-disclosure Agreement
• Do Non-disclosure Agreements Expire?