They may also need to disclose information which a competitor could use to their advantage in the marketplace. Use of non-disclosure agreements are on the rise in India and is governed by the Indian Contract Act 1872. Use of an NDA is crucial in many circumstances, such as to tie in employees who are developing patentable technology if the employer intends to apply for a patent. Non-disclosure agreements have become very important in light of India's burgeoning outsourcing industry. In India, an NDA must be stamped to be a valid enforceable document. Upon considering the legal aspects of a non-disclosure agreement, one can clearly see why they have become so commonplace. If you're serious about limiting the dissemination of your business's confidential information, then an NDA is exactly what you need. Some shady things can happen while the agreement is going on. When you are caught in any of it, you have to learn how to protect yourself. If you still aren’t sure if your business needs an non-disclosure agreement or confidentiality agreement, ask yourself the following yes or no questions.