Mutual Confidentiality and Nondisclosure Agreement
Also Known As: NDA, Confidentiality Agreement
Who Needs This: Any businesses or individuals sharing information with a third party to explore a partnership, sale, purchase, or other transaction.
Description: Thinking about going into business with someone? You’ll need to share information about your business as well as to receive information about theirs. This information will likely be proprietary and confidential (for example, pricing, methods, processes, assets, or customer lists) and would harm your business and theirs if disclosed. Enter a non-disclosure agreement, commonly called a NDA. An effective NDA defines what information must be kept confidential, for how long, and the consequences of disclosure. Unlike the Confidentiality Agreement, the NDA template is mutual—requiring both parties to keep information disclosed to them confidential.
Heads Up: If only one party will receive and maintain confidential information, then the one-way Confidentiality Agreement should do the trick.