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Non-Disclosure Agreement (Mutual)

This Non-Disclosure Agreement binds both parties in a transaction or venture to not disclose each other's confidential information. Customizable and ready to use in under 10 minutes.
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Document Overview

This Non-Disclosure Agreement binds both parties in a transaction or venture to not disclose each other's confidential information. It is normally signed alongside other documents key to that transaction or venture, and included as an attachment to those documents. It assumes that both parties will be sharing confidential information, and will benefit from keeping that information confidential. It is drafted to allow both parties to participate in the transaction or venture by sharing sensitive information to the extent required. In situations where it will be exclusively, or predominantly, one party sharing sensitive information with the other, parties should instead consider using a one-way Non-Disclosure Agreement.

This NDA is a binding legal contract that outlines a confidential relationship between the vendor/suppliers and the other party. Therefore, when a breach or violation occurs, you are able to claim rights in dispute against the violating disclosing party. These rights are outlined in the provisions of this agreement - some specifications include; an injunction, damage for loss, court order.

This NDA uses broad definitions of the categories of confidential information that are being protected. Parties may wish to add specific details to these definitions as needed.

Use this Non-Disclosure Agreement (Mutual) if:

  • You would like to disclose confidential information in a negotiation and want it not be in the public domain (ie. competitors, successors);

  • You would like to put restrictions on the use of confidential information;

  • You would like to maintain secrecy of information when working with contractors or potential investors;

  • You would access confidential information that belongs to someone else; and

  • You would like to protect confidential information including intellectual property, financial projections, customer lists and trade secrets.

What does the Non-Disclosure Agreement (Mutual) cover?

  • A description of the confidential information;

  • Confidential rights and obligations of the parties;

  • Protection of sensitive information;

  • Return of confidential information at the end of the agreement;

  • Obligations regarding proper use of the information; and

  • Circumstances where disclosure is permitted.

Who should sign a Non-Disclosure?

Business Partners

Business partners are the most common co-signatories of NDAs, as they may have a relationship where the power is relatively evenly distributed and where both parties are disclosing sensitive information while working together.


When engaging with clients or potential clients, a business or entity may have the clients sign a non-disclosure agreement when sensitive information is disclosed.


A business that relies on third-party vendors who may have access their confidential information should get the vendor to sign a non-disclosure agreement during their business relationship to ensure their information is protected.


Having an independent contractor sign a non-disclosure agreement where they may have access to confidential information during their employment, would prevent the contractor from acting on the information and protect the contracting entity.


Investors may be asked to sign a non-disclosure agreement when commercially sensitive information is shared between the parties to ensure the information does not go public, and the information is protected.

Other names for Non-Disclosure Agreement include:

  • NDA;

  • Confidentiality Agreement;

  • Confidential Disclosure Agreement (CDA);

  • Proprietary Information Agreement (PIA);

  • Secrecy Agreement (SA);

  • Confidentiality Contract; and

  • Gag Order.

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