The Limited Disclosure Agreement (LDA) is a crucial legal instrument used when organizations need to share sensitive information with specific parties while maintaining stricter controls than a standard NDA would provide. This document type is particularly relevant in the Indian legal context, where it draws authority from the Indian Contract Act, 1872, and various supporting legislation including IT laws and intellectual property protection frameworks. It is commonly used in situations such as due diligence processes, joint venture negotiations, contractor engagements, or when sharing proprietary technology with limited partners. The agreement typically includes detailed provisions about who can receive the information, specific permitted uses, security requirements, and consequences of unauthorized disclosure. Unlike broader confidentiality agreements, an LDA provides more precise control over information flow and is especially valuable in high-stakes business transactions or when dealing with highly sensitive proprietary information.
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1. Parties: Identification of the disclosing party, receiving party, and any other relevant parties including their registered addresses and company details
2. Background: Context of the agreement, purpose of disclosure, and nature of the relationship between the parties
3. Definitions: Definition of key terms including 'Confidential Information', 'Limited Disclosure Purpose', 'Authorized Recipients', and other relevant terms
4. Scope of Confidential Information: Detailed description of what constitutes confidential information under this agreement
5. Permitted Disclosure: Specific circumstances and purposes for which disclosure is permitted, including to whom and under what conditions
6. Obligations of Receiving Party: Core confidentiality obligations, security measures, and standard of care required
7. Term and Survival: Duration of the agreement and which obligations survive termination
8. Return or Destruction of Confidential Information: Requirements for handling confidential information upon termination or request
9. Breach and Remedies: Consequences of breach and available remedies including injunctive relief
10. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
1. Authorized Recipients: Detailed section on who can receive information and their obligations - include when information needs to be shared with specific teams or advisors
2. Security Measures: Specific technical and organizational measures required for information protection - include for highly sensitive information or when dealing with digital assets
3. Non-Solicitation: Restrictions on soliciting employees or clients - include when sharing involves exposure to key personnel or client information
4. Regulatory Compliance: Specific compliance requirements - include when dealing with regulated industries or sensitive personal data
5. Export Control: Provisions regarding international transfer of information - include for cross-border disclosures
6. Press Releases and Publicity: Restrictions on public announcements - include for high-profile relationships or listed companies
7. Insurance Requirements: Specific insurance coverage requirements - include for high-value or high-risk information
8. Data Privacy Compliance: Specific provisions for handling personal data - include when personal data is involved
1. Schedule 1 - Specific Confidential Information: Detailed list or categories of confidential information covered
2. Schedule 2 - Authorized Recipients: List of pre-approved individuals or roles permitted to receive the confidential information
3. Schedule 3 - Security Protocols: Specific security measures and protocols to be followed
4. Schedule 4 - Disclosure Purpose: Detailed description of the specific purpose(s) for which disclosure is permitted
5. Appendix A - Form of Confidentiality Undertaking: Template undertaking to be signed by Authorized Recipients
6. Appendix B - Information Return/Destruction Certificate: Template certificate confirming return or destruction of confidential information
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