Mutual Non-Disclosure Agreement

A Mutual NDA (Non Disclosure Agreement) is a legal document used by parties engaged in a business arrangement to mutually forbid the sharing of information defined in the agreement.

 

When two parties enter into a business negotiation, they often want to protect the sensitive information shared between them. With a Mutual NDA, both sides agree, under the penalty of law, to refrain from discussing details of what is learned about each other and the business arrangement with external parties.

The Mutual NDA is most commonly used to protect proprietary information that meets the following criteria:

• The data for which the availability is either limited or unknown to the public.

• If the owner of the information wants to keep it a secret

• The information provides the owner with a significant advantage.

What Is a Mutual NDA?

A Mutual NDA is a contract between two parties to refrain from sharing the information identified in the agreement.

Other Names for Mutual NDA

Depending on the context and preferred terminology, a Mutual NDA may also be known as:

• Confidential Disclosure Agreement (CDA)

• Confidentiality Agreement (CA)

• Secrecy Agreement (SA)

• Proprietary Information Agreement (PIA)

Who Needs a Mutual NDA

If two parties want to protect the sensitive information learned about each other (during a business negotiation, business arrangement, or otherwise), they can enter into a Mutual NDA. By signing the NDA, both parties are forbidden from sharing the specified information in whole or in part.

While mutual NDAs mostly involve business entities, they can also be used by a business and an individual. For example, it is often used between an employer and an employee. The employee is forbidden to disseminate the company information learned due to carrying out his or her employment duties.

Why Use Swyftfilings for Your Mutual NDA

Customized for you, by you

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Mutual NDA.

Specific to your jurisdiction

Laws vary by location. Each document on Swyftfilings is customized for your state.

How to Create a Mutual NDA with Swyftfilings

The Mutual NDA, when entered into between two parties, is a guarantee that one party will not share any confidential information learned about the other party. This is a crucial document that protects your most valuable information and thus must pass legal muster.

Let Swyftfilings help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.

What Information Will I Need to Create My Mutual NDA?

To create your document, please provide:

• Date: The date when the Mutual NDA becomes effective

• Name and contact information: Legal names and addresses of both parties in the NDA

• Confidentiality: The nature of the Mutual NDA or the type of information covered

• Term: The duration of the NDA

• State laws: The state’s laws that apply

Mutual NDA Terms

• Non-Circumvention Covenant: In the context of an NDA, this is an agreement to not circumvent or bypass the other company, especially with the classified information gained.

• Receiving Party: In the context of an NDA, this is the party receiving sensitive information.

• Disclosure Party: In the context of an NDA, the party discloses confidential information to the receiving party.

Mutual NDA Signing Requirements

The Mutual NDA needs to be signed by both parties. In the case of business entities, an authorized representative signs the document on its behalf.

What to Do with Your Mutual NDA

After signing, the Mutual NDA becomes effective and legally binding. It does not require filing with any government body. Optionally, the document can be witnessed and notarized to strengthen the validity of the signatures.

Depending on your state, a Mutual Non-Disclosure Agreement may also be known as:

If you need to formalize agreements and ensure legal compliance, this document is an essential tool.

Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Mutual Non-Disclosure Agreement.

Laws vary by location. Each document on Swyft Forms is customized for your state.