ContractsCounsel Logo

Mutual Non-Disclosure Agreement

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,503 reviews
Home Types of Contracts Mutual Non-Disclosure Agreement

Jump to Section

Need help with a legal contract?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

A mutual non-disclosure agreement is a contract entered by parties to establish a confidential relationship restricting the disclosure of essential information. When parties want to interact or work together, they often employ an NDA to protect the confidentiality of any sensitive or proprietary information. The agreement helps drive a confidential relationship between parties involved in a transaction. We will now go into further details about a mutual non-disclosure agreement below.

Essential Provisions of a Mutual Non-Disclosure Agreement

Below are the essential provisions of a mutual non-disclosure agreement.

  • Identification of Confidential Information: Identifying what information is considered confidential and subject to protection under the agreement.
  • Permitted Use and Purpose: Specifying the purpose for which the confidential information may be used, often limited to a specific project or business relationship.
  • Exceptions to Confidentiality: Outlining specific situations where disclosure of confidential information may be allowed, such as with written consent or when required by law.
  • Term and Termination: Establishing the agreement duration and the factors under which it can be terminated or extended.
  • Remedies and Legal Recourse: Defining the available remedies in case of a breach, including possible damages or injunctive relief.
  • Governing Law and Jurisdiction: Specifying the jurisdiction and governing law that will apply to the agreement.

Benefits of Entering into a Mutual Non-Disclosure Agreement

As mentioned below, a mutual non-disclosure agreement offers several benefits for all parties involved.

  • Establishes a clear framework for protecting sensitive information
  • Reduces the risk of unauthorized disclosure
  • Builds trust and confidence between parties
  • Encourages open collaboration and sharing of proprietary knowledge
  • Provides a time-bound commitment to protect sensitive information
Meet some lawyers on our platform

James H.

2 projects on CC
View Profile

Scott S.

41 projects on CC
View Profile

Zachary J.

182 projects on CC
View Profile

Brian R.

1 project on CC
View Profile

Scope of Confidential Information in a Mutual Non-Disclosure Agreement

Defining the scope of confidential information in a mutual non-disclosure agreement is essential to ensure comprehensive protection. Here are the key points to better understand the scope of confidential information in a mutual non-disclosure agreement.

  • Protecting Trade Secrets: Protecting proprietary manufacturing processes, formulas, or algorithms.
  • Safeguarding Proprietary Data: Safeguarding financial records, sales figures, customer databases, or marketing strategies.
  • Protecting Customer Information: Ensuring the privacy and confidentiality of client lists, contact details, or purchasing habits.
  • Protecting Research Findings: Securing innovative ideas, experimental results, or intellectual property.
  • Protecting Sensitive Business Information: Covering plans for expansion, mergers, acquisitions, or product development. Identify the information categories that fall under the purview of the NDA.
  • Providing Examples and Sources: Provide specific examples and examples of the categories of information included. Clarify that confidential information is not limited to specific formats or sources.
  • Covering Information: Cover information disclosed orally, in writing, visually, electronically, or through other means. Outline any information that is not considered confidential.
  • Identifying Purposes: Identify any exceptions, such as publicly available information or information known before entering the NDA. Account for the possibility of additional confidential information being shared during the relationship.

Key Considerations for Drafting a Mutual Non-Disclosure Agreement

Drafting an effective mutual non-disclosure agreement requires careful consideration of the terms and provisions to adequately protect the confidential information of both parties involved. Here are some key considerations when drafting an effective mutual non-disclosure agreement.

  • Identifying the Parties: Begin the agreement by clearly stating both parties' names and contact information entering the NDA.
  • Defining the Purpose: Specify the purpose of the NDA, highlighting the need for confidentiality and the intent to protect sensitive information.
  • Describing the Confidential Information: Clearly define the types of information considered confidential and subject to the agreement. Provide specific examples and categories to ensure clarity.
  • Noting Obligations of the Receiving Party: Everyone must note the responsibilities and obligations of the receiving party to protect confidential information. It may include non-disclosure and information-sharing restrictions with third parties.
  • Outlining the Permitted Uses: Specify any exceptions or permitted uses of the confidential information, such as when disclosure is required by law or authorized in writing by the disclosing party.
  • Including the Duration of the Agreement: Define the duration of the NDA, indicating the period during which confidentiality obligations will apply. This can be a specific time frame or continue indefinitely.
  • Addressing the Return or Destruction of Information: Include provisions outlining the return or destruction of confidential information upon request or termination of the agreement. Specify the timeline and method of returning or destroying the information.
  • Including Remedies for Breaches: Outline the remedies available in case of a breach of the NDA, such as injunctive relief, monetary damages, or specific performance.

Steps to Collaborate with a Lawyer for Mutual Non-Disclosure Agreements

One of the wisest considerations for a mutual NDA is to collaborate with a lawyer. It helps certify that your interests are protected and that the agreement adequately addresses your needs. Here are suggested steps to engage a lawyer for a Mutual NDA:

  1. Identify your Specific Requirements: Before approaching a lawyer, it's helpful to clearly understand the information you need to protect and the scope of the non-disclosure agreement. Consider what proprietary or sensitive information you want to share and what restrictions or limitations you wish to impose on its use and disclosure.
  2. Research and Select a Lawyer: Look for attorneys or law firms with experience in contract law, intellectual property, or business law. Seek recommendations from trusted sources or conduct online research to find lawyers specializing in NDAs or general business contracts. Choosing a lawyer with an understanding of your industry and who can provide relevant legal advice is important.
  3. Schedule an Initial Consultation: Contact the lawyer or law firm and request an initial consultation to discuss your requirements and objectives. Many lawyers offer free or low-cost initial consultations to assess your needs and determine if they can assist you effectively.
  4. Share Relevant Information: If the lawyer agrees to take on your case, be prepared to provide any relevant documentation or information necessary for drafting the NDA. It has details about the parties, the type of information to be protected, the duration of the agreement, and any specific provisions or restrictions you want to include.
  5. Perform Review and Negotiation: Once the lawyer has drafted the NDA based on your requirements, carefully review the document to ensure it aligns with your needs and expectations. If any clauses or provisions require clarification or modification, discuss them with your lawyer and negotiate to arrive at a mutually agreeable version of the agreement.
  6. Seek Legal Advice: Your lawyer will guide you throughout the process, explaining the legal implications of the NDA and ensuring that your interests are protected. The NDA can be signed by all involved parties to make it legally binding once both parties are satisfied with the terms.

Key Terms for Mutual Non-Disclosure Agreements

  • Confidential Information: The sensitive information is kept under the mutual non-disclosure agreement.
  • Obligations: The receiving party's responsibilities and duties are to maintain the disclosed information's confidentiality.
  • Duration: The period during which the non-disclosure obligations will remain in effect.
  • Exceptions: The limited circumstances where disclosure of confidential information is permitted, such as legal requirements or written consent.
  • Remedies: The available courses of action in case of a breach, including injunctive relief, monetary damages, or specific performance.

Final Thoughts on Mutual Non-Disclosure Agreements

A mutual non-disclosure agreement (NDA) imbibes trust and confidentiality between parties, providing peace of mind and protecting valuable information. Businesses and individuals can establish strong and secure relationships by carefully considering the terms, seeking legal guidance, and maintaining open communication while safeguarding their confidential information. By establishing clear guidelines and obligations regarding the disclosure and use of sensitive information, a mutual NDA provides a legal framework that promotes trust and safeguards the interests of all parties involved.

If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Mutual Non-Disclosure Agreement Lawyers

Daliah S. on ContractsCounsel
View Daliah
5.0 (1)
Member Since:
September 1, 2021

Daliah S.

Principal Attorney
Free Consultation
Chicago, IL
19 Yrs Experience
Licensed in IL
University of Illinois College of Law

Daliah Saper operates a cutting-edge internet and social media law practice that regularly leads local and national media outlets to solicit her commentary on emerging internet law issues involving cyberbullying, sexting, catfishing, revenge porn, anonymous online defamation, domain name and user-name squatting, privacy, and the latest business decisions made by social media platforms such as Facebook, Twitter and YouTube. As a litigator Daliah represents companies bringing or defending business and intellectual property disputes. (She has argued cases in a number of jurisdictions including taking a case all the way to the Illinois Supreme Court.) As a transactional lawyer she helps clients choose the right business entity, drafts contracts and licensing agreements, advises on sweepstakes and contest rules, and ensures website terms of use and privacy policies are compliant, and provides comprehensive trademark and copyright counseling. Since founding Saper Law Offices in 2005, Daliah has been named a 40 Under 40 by Law Bulletin Publishing Co., a top Media & Advertising attorney by Super Lawyers Magazine 14 years in a row, and has been repeatedly recognized as a leading media and entertainment lawyer by Chambers and Partners. For the past eleven years, she also has taught entertainment and social media law at Loyola University Chicago School of Law.

Alen A. on ContractsCounsel
View Alen
5.0 (11)
Member Since:
August 26, 2021

Alen A.

Free Consultation
Los Angeles, CA
16 Yrs Experience
Licensed in CA
University of West Los Angeles

Alen is an attorney and licensed real estate broker with over 15 years of experience representing clients in real estate and business matters. Alen has extensive experience in business and real estate matters. The work includes lease/contract drafting & negotiations, real estate transactions, advising the purchase/sale of businesses, and other matters commonly confronting small businesses and individuals.

Garrett M. on ContractsCounsel
View Garrett
5.0 (7)
Member Since:
August 30, 2021

Garrett M.

Free Consultation
Dexter, MO
7 Yrs Experience
Licensed in TX
University of Texas

Hello! I am a young attorney with four years' experience in real estate transactions, fund formation, and general corporate transactional work. I graduated in 2016 from the University of Texas - Austin and I am barred in Texas.

Billy Joe M. on ContractsCounsel
View Billy Joe
5.0 (3)
Member Since:
October 26, 2021

Billy Joe M.

Partner Attorney
Free Consultation
Chicago, IL
14 Yrs Experience
Licensed in IL
University of Illinois at Urbana-Champaign

I graduated from the University of Illinois at Urbana-Champaign in 2006 with a degree in Political Science, Finance, and Economics. I stayed around Champaign for law school and graduated in 2009. I then worked at a big law firm in downtown Chicago. It was boring, so I quit in early 2011. I thought that I could not be happy practicing law - I was wrong. After I quit the traditional law firm life, I began representing my own clients. I realize now that I love helping normal people, small business owners, and non-profits address a variety of legal issues. I hope to hear from you.

Alex M. on ContractsCounsel
View Alex
Member Since:
August 26, 2021

Alex M.

Free Consultation
Los Angeles, California
12 Yrs Experience
Licensed in CA
Southwestern Law School

Mr. Mehdipour attended the University of California San Diego where he received his degree in political science. After graduating from UCSD, Mr. Mehdipour attended Southwestern University School of Law where he received his JD. Upon passing the bar, Mr. Mehdipour gained invaluable experience both in a law firm and business setting. Mr. Mehdipour uses his prior business and legal experiences to negotiate the most advantageous results for his clients.

Nicholas A. on ContractsCounsel
View Nicholas
Member Since:
August 28, 2021

Nicholas A.

Founder, Victrix Legal LLC
Free Consultation
Buffalo, NY
2 Yrs Experience
Licensed in NY
Liberty University School of Law

I help small business owners build and protect their dreams. I always thought that I would just be a litigator. Then I joined an intellectual property clinic in law school. We were helping nonprofits and small businesses reach their goals. I fell in love with the work and decided to open my own firm so I could keep helping them. When I decided to start Victrix Legal, I decided that it would be a modern law firm designed to serve professionals. It would be different from every other law firm. In my experience, my law firms are designed to promote inefficiency and reactionary lawyering. Because in most firms, you make more money when you spend more time on a project. And you lose money if your client doesn't get sued. In my opinion, that's a built-in conflict of interest. My firm is different. I use flat fees for most basic projects to keep costs predictable for you and incentivize efficiency. I offer long-term advisory plans and legal audits to prevent issues from happening. I want my clients to see me as their business partner, not just the guy they call when they are in trouble. If any of that interests you, please reach out to me. I offer free consultations. Let's set aside some time and talk about what your legal needs are.

Gerald W. on ContractsCounsel
View Gerald
Member Since:
August 28, 2021

Gerald W.

Free Consultation
Round Rock, Texas
9 Yrs Experience
Licensed in IL, TX
Valparaiso University School of Law

My clients know me as more than just an attorney. First and foremost, my background is much broader than that. Prior to attending the Valparaiso University School of Law, I earned a Master of Business Administration and ran a small business as a certified public accountant. Thanks to this experience, I possess unique insight which in turn allows me to better assist my clients with a wide range of business and tax matters today. In total, I have over 20 years of experience in financial management, tax law, and business consulting, and I’m proud to say that I’m utilizing the knowledge I’ve gained to assist the community of Round Rock in a variety of ways. In my current practice, I provide counsel to small to medium-sized businesses, nonprofit organizations, and everyday individuals. Though my primary areas of practice are estate planning, elder law, business consulting, and tax planning, I pride myself on assisting my clients in a comprehensive manner. Whenever I take on a new client, I make an effort to get to know them on a personal level. This, of course, begins with listening. It is important that I fully understand their vision so I can help them successfully translate it into a concrete plan of action that meets their goals and expectations. I appreciate the individual attributes of each client and know firsthand that thoughtful, creative, and customized planning can maximize both financial security and personal happiness. During my time as a certified public accountant, I cultivated an invaluable skill set. After all, while my legal education has given me a deep understanding of tax law, I would not be the tax attorney I am today without my background in accounting. Due to my far-reaching experience, I am competent in unraveling even the most complex tax mysteries and disputes. My CPA training benefits my estate planning practice, too. In the process of drafting comprehensive wills and trusts, I carefully account for every asset and plan for any tax burdens that may arise, often facilitating a much smoother inheritance for the heirs of my clients. Prior to becoming certified as a CPA, I made sure to establish a solid foundation in business both in and out of the classroom, and the acumen I’ve attained has served me well. Not only am I better able to run my own practice than I otherwise would be; I am able to help other small business owners fulfill their dreams, as well.

Find the best lawyer for your project

Browse Lawyers Now
Mutual Non-Disclosure Agreement lawyers by city
See All Mutual Non-Disclosure Agreement Lawyers
related contracts
See More Contracts
other helpful articles

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer


Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city