US (General)

Mutual Non-Disclosure Agreement (NDA)

A professional starting-point mutual confidentiality agreement for business discussions, partnerships, and negotiations. Protects both parties' confidential information.

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Mutual Non-Disclosure Agreement (NDA)

This Mutual Non-Disclosure Agreement ("Agreement") is entered into as of [DATE] ("Effective Date") by and between:

Party A: [PARTY A NAME], a [STATE] [ENTITY TYPE] with its principal place of business at [PARTY A ADDRESS]

Party B: [PARTY B NAME], a [STATE] [ENTITY TYPE] with its principal place of business at [PARTY B ADDRESS]

(Each a "Party" and collectively the "Parties").


1. Definition of Confidential Information

"Confidential Information" means any non-public information, whether written, oral, electronic, or visual, disclosed by either Party ("Disclosing Party") to the other Party ("Receiving Party"), including: - Business plans, strategies, financial data - Technical data, algorithms, source code, designs - Customer lists, supplier information, pricing - Trade secrets and proprietary processes - Information marked "Confidential" or designated as such in writing within 30 days of oral disclosure

Exclusions: Not Confidential Information if: - Publicly known through no fault of Receiving Party - Independently developed without use of Confidential Information - Rightfully received from third party without restriction - Required to be disclosed by law (with prompt notice to Disclosing Party)


2. Permitted Purpose

Confidential Information may be used only for: [DESCRIBE PURPOSE, e.g., "evaluating a potential business partnership between the Parties"] ("Permitted Purpose").

No other use permitted without prior written consent.


3. Obligations of Receiving Party

Receiving Party shall: - Hold Confidential Information in strict confidence - Use at least reasonable care (same as own confidential information) - Limit access to employees, contractors, advisors with need-to-know who are bound by equivalent obligations - Not copy, reverse engineer, decompile, or analyze Confidential Information - Notify Disclosing Party immediately of any unauthorized disclosure


4. Term

Agreement Term: [1-3] years from Effective Date.

Confidentiality Survival: Obligations survive for: - 3 years for general confidential information - Perpetual for trade secrets (as long as they remain trade secrets under applicable law)


5. Return or Destruction

Upon Disclosing Party's written request or Agreement termination, Receiving Party shall: - Return all Confidential Information (including copies) - OR certify in writing that all Confidential Information has been destroyed - Exception: May retain one archival copy for legal/compliance purposes, subject to continued confidentiality obligations


6. Remedies

Injunctive Relief: Disclosing Party entitled to injunctive relief without proving actual damages or posting bond (irreparable harm presumed).

Attorney Fees: Prevailing party in any enforcement action recovers reasonable attorney fees and costs.

Cumulative Remedies: Remedies are cumulative, not exclusive.


7. General Provisions

Governing Law: [STATE] law.

Jurisdiction: State and federal courts in [COUNTY, STATE].

No License: No IP rights granted except as expressly stated.

No Partnership: No agency, partnership, or joint venture created.

Assignment: Neither Party may assign without prior written consent.

Entire Agreement: This Agreement supersedes all prior discussions.

Amendments: Only in writing signed by both Parties.

Severability: Unenforceable provisions severed; remainder stays in effect.

Counterparts: Electronic signatures valid.


Signatures

PARTY A By: ____ Name: ___ Title: ____ Date: ___

PARTY B By: ____ Name: ___ Title: ____ Date: ___

Key Clauses — What to Watch

These clauses often contain terms that favor the other party. Review carefully before signing.

Section 1

Definition of Confidential Information

Must be specific enough to be enforceable but broad enough to protect. Marking requirement ("Confidential" label) creates clarity but can be burdensome.

Section 2

Permitted Purpose

Restricts use to specific purpose (e.g., "evaluating potential partnership"). Prevents misuse for competitive advantage.

Section 3

Obligations & Standard of Care

At least "reasonable care" (same as own secrets). Define who can access (employees, advisors on need-to-know basis).

Section 4

Exceptions

Standard carve-outs: public domain, independently developed, rightfully received from third party, legal compulsion (with notice).

Section 5

Term & Survival

NDA term (1-3 years typical) vs. confidentiality survival (3-5 years, or perpetual for trade secrets). Don't confuse the two.

Section 6

Return/Destruction of Materials

Upon request or termination, return or certify destruction. Allow retention of one archival copy for legal compliance.

Section 7

Remedies

Injunctive relief (no adequate remedy at law). No need to prove actual damages for injunction. Attorney fees clause for enforcement.

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Frequently Asked Questions

Mutual vs. One-Way NDA

Mutual NDA: both parties share confidential info (partnerships, M&A, joint ventures). One-Way NDA: only one party discloses (vendor evaluation, investor pitch). This template is mutual - can be used one-way by having one party's disclosures be minimal.

How long should confidentiality last?

Business info: 2-3 years typical. Trade secrets: perpetual (as long as they remain trade secrets). Don't make everything perpetual - courts may find it unreasonable.

Do I need to mark everything Confidential?

This template requires marking for written materials. Oral disclosures: confirm in writing within 30 days. Practical tip: use a standard header/footer on documents.

Can an NDA prevent someone from working for a competitor?

No. NDAs protect information, not employment. Non-competes are separate agreements with much stricter enforceability requirements (and banned in many states). This NDA does not restrict employment.

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Disclaimer: Templates and analysis are provided for general informational purposes and do not constitute legal advice. Laws and requirements vary by jurisdiction. Consult a qualified attorney for your specific situation.