Mutual Non-Disclosure Agreement Template

The cre­ation of a mutu­al NDA involves reach­ing a con­sen­sus between the two par­ties on the infor­ma­tion that should be kept secret and con­fi­den­tial to the pub­lic. Unlike a tra­di­tion­al NDA, this type of agree­ment requires each par­ty to iden­ti­fy the infor­ma­tion they both wish to keep secret and the con­se­quences that flow from it if the infor­ma­tion is to be dis­closed. A uni­lat­er­al NDA is anoth­er term for a stan­dard NDA agree­ment and is also called a sin­gle-use NDA. This is the most com­mon type of NDA used by com­pa­nies and is often used in an employ­ment con­tract or a con­tract with inde­pen­dent con­trac­tors. The uni­lat­er­al NDA is cre­at­ed to pro­tect the company‘s infor­ma­tion, with the recip­i­ent com­mit­ting not to dis­close infor­ma­tion. In these agree­ments, the com­pa­ny does not make any promis­es of con­fi­den­tial­i­ty, in par­tic­u­lar because the receiv­ing par­ty does not have impor­tant infor­ma­tion that it dis­clos­es. A mutu­al con­fi­den­tial­i­ty agree­ment (NDA), also known as a mutu­al con­fi­den­tial­i­ty agree­ment, is a legal agree­ment between two or more par­ties who wish to exchange con­fi­den­tial infor­ma­tion with each oth­er and pre­vent any par­ty from shar­ing the infor­ma­tion with oth­er par­ties. Con­fi­den­tial­i­ty agree­ments are quite con­vinc­ing. It shall ensure that both par­ties are account­able for any loss result­ing from the dis­clo­sure of con­fi­den­tial infor­ma­tion. A court may pro­pose injunc­tions or com­pen­sa­tion for some that would result from the breach of the agree­ment. Unlike a tra­di­tion­al NDA, where only one (1) par­ty is bound by the agree­ment, a mutu­al NDA requires that both par­ties be pre­vent­ed from exchang­ing infor­ma­tion relat­ing to trade secrets, busi­ness rela­tion­ships and oth­er details agreed upon by the par­ties. This is a com­mon prac­tice when two (2) par­ties have a mutu­al inter­est in keep­ing cer­tain infor­ma­tion secret from third par­ties (3) and the public.

They should include the peri­od for which the agree­ment will for­mal­ly enter into force. It may not always be the same day the mutu­al con­fi­den­tial­i­ty agree­ment is signed, so you should make sure that you make this clear in the agree­ment. In order to pre­vent mul­ti­ple con­tracts from being designed and re-signed, some com­pa­nies imme­di­ate­ly use a rec­i­p­ro­cal con­fi­den­tial­i­ty agree­ment, although only one par­ty shares sen­si­tive information..…