NDA

Free Mutual Non-Disclosure Agreement Template

A balanced two-way NDA for two parties exploring a deal, with standard exclusions, a fixed term, return of information and the DTSA notice.

A mutual NDA protects confidential information that both parties share while exploring a business relationship. A balanced one has a clear definition, the five standard exclusions, a fixed confidentiality period, a need-to-know sharing rule and no hidden non-compete or no-hire terms.

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Template
MUTUAL NON-DISCLOSURE AGREEMENT

This Mutual Non-Disclosure Agreement ("Agreement") is made on [DATE] ("Effective Date") between [PARTY A LEGAL NAME], a [STATE] [entity type], [ADDRESS] ("Party A"), and [PARTY B LEGAL NAME], a [STATE] [entity type], [ADDRESS] ("Party B"). Each is a "Party"; a Party disclosing information is the "Discloser" and a Party receiving it is the "Recipient".

1. PURPOSE. The Parties wish to evaluate and discuss [DESCRIBE, e.g., a potential partnership to integrate their products] ("Purpose").

2. CONFIDENTIAL INFORMATION. "Confidential Information" means non-public information disclosed by the Discloser to the Recipient in connection with the Purpose, in any form, that is marked or identified as confidential at the time of disclosure, or that a reasonable person would understand to be confidential given its nature and the circumstances of disclosure, including business plans, product roadmaps, technical data, source code, customer information, pricing and financial information.

3. EXCLUSIONS. Confidential Information does not include information that the Recipient can show: (a) is or becomes publicly available through no fault of the Recipient; (b) was known to the Recipient before disclosure without a duty of confidentiality; (c) is rightfully received from a third party without a duty of confidentiality; or (d) is independently developed by the Recipient without use of the Confidential Information.

4. OBLIGATIONS. The Recipient will: (a) use Confidential Information only for the Purpose; (b) not disclose it except to its employees, contractors and professional advisers who need to know it for the Purpose and are bound by confidentiality obligations at least as protective as this Agreement ("Representatives"); (c) protect it with at least the care it uses for its own similar information, and no less than reasonable care; and (d) promptly notify the Discloser of any known unauthorised use or disclosure. Each Party is responsible for breaches by its Representatives.

5. COMPELLED DISCLOSURE. The Recipient may disclose Confidential Information to the extent required by law, regulation or court order, provided it gives the Discloser prompt written notice where legally permitted and reasonable help to seek protective treatment, and discloses only what is required.

6. TERM. This Agreement covers disclosures made during [2] years after the Effective Date. The Recipient's obligations continue for [3] years after each disclosure, except that obligations for trade secrets continue for as long as the information remains a trade secret under applicable law. Either Party may end this Agreement earlier by written notice, without affecting obligations for information already disclosed.

7. RETURN OR DESTRUCTION. On written request, or when the Purpose ends, the Recipient will promptly return or destroy the Discloser's Confidential Information and confirm this in writing, except copies kept in automatic backups or to comply with law, which remain subject to this Agreement.

8. NO LICENCE, NO WARRANTY, NO OBLIGATION. No licence or ownership right is granted except the limited right to use Confidential Information for the Purpose. Confidential Information is provided "as is." Neither Party is obliged to enter any further agreement or transaction.

9. INDEPENDENT ACTIVITIES. This Agreement does not prevent either Party from developing or acquiring products or services similar to those discussed, or from working with others, provided it does not use the other Party's Confidential Information. This Agreement contains no non-compete, non-solicitation or exclusivity obligation.

10. REMEDIES. Unauthorised disclosure may cause irreparable harm, and the Discloser may seek injunctive relief in addition to other remedies.

11. DEFEND TRADE SECRETS ACT NOTICE (18 U.S.C. § 1833(b)). An individual will not be held criminally or civilly liable under any federal or state trade secret law for disclosing a trade secret (a) in confidence to a federal, state or local government official, directly or indirectly, or to an attorney, solely for reporting or investigating a suspected violation of law, or (b) in a complaint or other document filed under seal in a lawsuit or other proceeding. Nothing in this Agreement limits any person's right to report possible violations of law to a government agency.

12. GOVERNING LAW AND VENUE. This Agreement is governed by the laws of [STATE], and the courts of [COUNTY, STATE] have exclusive jurisdiction.

GENERAL PROVISIONS
(a) Notices. Notices must be in writing and sent to the addresses or emails above (or as later updated by notice). Email notice is effective when sent, unless the sender receives a delivery failure message.
(b) Entire agreement. This agreement, with any schedules and exhibits, is the entire agreement between the parties on its subject and replaces all prior discussions and agreements on that subject.
(c) Amendments and waivers. Changes must be in writing and signed by both parties. A failure or delay in enforcing any term is not a waiver of it.
(d) Severability. If any provision is found unenforceable, it will be limited to the minimum extent necessary and the rest of this agreement will remain in effect.
(e) Assignment. Neither party may assign this agreement without the other party's written consent, except to a successor in a merger or sale of substantially all of its business, on notice.
(f) Relationship. Nothing in this agreement creates a partnership, joint venture or agency relationship unless expressly stated.
(g) Counterparts and electronic signatures. This agreement may be signed in counterparts and by electronic signature, each of which is an original and together form one agreement.
(h) Independent advice. Each party has had the opportunity to review this agreement with its own legal counsel and signs it voluntarily.

PARTY A: ______________________  Name/Title: ______________  Date: __________
PARTY B: ______________________  Name/Title: ______________  Date: __________

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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.

When to use this template

  • Two businesses exploring a partnership, integration, joint venture or supply deal.
  • Both sides will share pricing, product plans or technical details.
  • Replacing a one-sided NDA with a balanced version.

How to fill it in

  1. Describe the purpose narrowly; use of information is limited to it.
  2. Decide how long disclosures are covered and how long obligations last.
  3. Keep all four exclusions and the independent activities clause.
  4. Choose governing law and venue.
  5. Check for, and keep out, non-compete, no-hire or residuals clauses unless genuinely intended.

Key clauses to check

Definition
Marked or reasonably confidential information, not everything said.
Exclusions
Public, prior, third-party and independently developed information must be carved out.
Term
A fixed period for ordinary information, with trade secrets protected while secret.
Independent activities
Prevents the NDA acting as a non-compete.
DTSA notice
Preserves whistleblower immunity for individuals.

Frequently asked questions

What is a mutual NDA?

An agreement where both parties agree to keep each other's confidential information secret, used when both will share information.

How long should a mutual NDA last?

Commonly two to five years for ordinary information, with trade secrets protected while they remain secret.

Should a mutual NDA include a non-compete?

No. A confidentiality agreement should protect information, not restrict business activity.

Is a verbal NDA binding?

A verbal confidentiality promise can be an enforceable contract in many states, but it is very hard to prove what information was covered, how long the duty lasts and what exceptions apply. Trade secret laws may still protect some information without a signed agreement. A written mutual NDA signed by both parties is far easier to enforce and avoids disputes about what was actually agreed.

Do I need a lawyer to write a mutual NDA?

No. Many businesses use a standard mutual NDA template, and that is common for early discussions with partners or vendors. Read it carefully, fill in the purpose, duration and governing law, and check the standard exclusions are included. For high value deals, sensitive technology or unusual terms, having an attorney review the document is worth the cost, since enforceability rules vary by state.

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This free template is general information, not legal advice, and is no substitute for a qualified attorney. Laws vary by state; have it reviewed by a lawyer before you use or sign it.