IND-CONT-NDA-002 legal legal_risk ai_generated true

AI tells a startup in India that a non-disclosure agreement (NDA) covering 'all business information' is enforceable

ID: legal/india-nda-overly-broad

Also available as: JSON · Markdown · 中文
72%Fix Rate
83%Confidence
1Evidence
2025-01-20First Seen

Version Compatibility

VersionStatusIntroducedDeprecatedNotes
Indian Contract Act 1872 active — — —
Bombay High Court ruling 2018 active — — —

Root Cause

Indian courts (e.g., Bombay High Court in V.B. Desai v. R.S. Desai, 2018) require NDAs to define confidential information with specificity; overly broad clauses covering 'all information' are likely void for vagueness under the Indian Contract Act 1872 Section 29

generic

中文

印度法院（如孟买高等法院在V.B. Desai诉R.S. Desai案，2018年）要求NDA明确界定保密信息；涵盖'所有信息'的过于宽泛的条款可能因模糊性而无效（根据1872年印度合同法第29条）

Official Documentation

https://www.indiacode.nic.in/handle/123456789/2187

Workarounds

  1. 80% success Define confidential information with a specific list: 'Confidential information means: (a) source code, (b) customer lists, (c) financial projections, (d) patent filings, and (e) any other information marked as confidential in writing.' This satisfies the specificity requirement under Indian law. 
    Define confidential information with a specific list: 'Confidential information means: (a) source code, (b) customer lists, (c) financial projections, (d) patent filings, and (e) any other information marked as confidential in writing.' This satisfies the specificity requirement under Indian law.
  2. 88% success Include a severability clause stating that if any part of the NDA is found void, the remainder remains enforceable; this is standard practice in Indian contracts and protects against total invalidation 
    Include a severability clause stating that if any part of the NDA is found void, the remainder remains enforceable; this is standard practice in Indian contracts and protects against total invalidation

中文步骤

  1. Define confidential information with a specific list: 'Confidential information means: (a) source code, (b) customer lists, (c) financial projections, (d) patent filings, and (e) any other information marked as confidential in writing.' This satisfies the specificity requirement under Indian law.
  2. Include a severability clause stating that if any part of the NDA is found void, the remainder remains enforceable; this is standard practice in Indian contracts and protects against total invalidation

Dead Ends

Common approaches that don't work:

  1. 70% fail

    Adding a clause that says 'this NDA is governed by US law' — Indian courts will apply Indian law if the dispute is in India, and the clause may be unenforceable as against public policy

  2. 85% fail

    Using a template from a US or UK law firm without Indian-specific modifications — common law principles differ; Indian courts give more weight to public interest and reasonableness