Pl. can any one tell me what is the validity of a confidentiality clause / NDA where the period of its effectiveness is not mentioned? If it is perpetual or ends with the agreement.
Thanx
Premalatha.S.Bhat (Legal Consultant) 20 August 2010
Pl. can any one tell me what is the validity of a confidentiality clause / NDA where the period of its effectiveness is not mentioned? If it is perpetual or ends with the agreement.
Thanx
Pankaj Kumar (Legal Executive) 20 August 2010
Dear Premlata,
The Confidentiality clause cannot be made perpetual even if it is mentioned in the agreement as perpetual. If time period is not mentioned then its effectiveness ends with the terms of the agreement. But in case of special circumstances/facts where the employees had access to sensitive informations of the company, the effectiveness of confidentiality clause gets automatically extended for term beyond the terms of hte contract. Extension is not unreasonable and many things depends upon the facts.