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1. What is a Non-disclosure Compete Agreement?

A Non-Disclosure Compete agreement is an agreement in which parties agree not to disclose the confidential information of each other obtained during the business deal and also not to use any information, trade secrets or other sensitive information of the one party to an agreement to compete as rivals in the market by another party. This agreement outlines the information that is confidential and cannot be disclosed to any third party. NDCA is a need of an hour as nowadays most of the businesses are collaborating and while entering into business deals, entities have to share information such as proprietary information, trade secrets, IPR and other sensitive and confidential information is vital for the success of business. Protection of such information has always been a major concern of the business therefore the parties enter into NDCA whereby they restrict the other party from disclosing any information that has been obtained in the course of businesses and also restraint the party from entering into similar trade for a certain period of time.

2. Why is this agreement important?

Non-disclosure agreement compete agreement is a restrictive covenant as it restrains the right of other parties to carry on any trade or profession. However, they are legally enforceable because of the following reasons 1. These agreements protect sensitive and confidential information from being made available to the public by the recipient of the information 2. It protects the unique business idea from being stolen 3. Such contracts decrease the competition in the market 4. Such contracts help the parties in establishing a relationship based out of trust. 5. Such contracts decrease the competition in the market.

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