What is Mutual-NDA? The Mutual Non-Disclosure Agreement is a sample contract between two parties exploring a business opportunity of mutual interests, whereby the parties agree to treat disclosed information concerning the opportunity as confidential
What it prevents? A mutual non-disclosure agreement prevents two or more parties from divulging information pertaining to the other parties involved. It is basically a mutual agreement not to discuss dealings or decisions that have transpired between the parties.
Meaning…. This could simply mean that an employee might be prohibited from discussing business trade secrets of their former employer, while at the same time requiring the former employer from discussing confidential information regarding the employee, such as salary, the agreement where termination or notice was given, and the like.
Usage The Mutual Non-Disclosure Agreement outlines the terms and conditions of the contract and is customizable for your company’s specific usage. Non-disclosure agreements can be used in the business arena or in personal matters. Any nondisclosure agreement that imposes obligations on both parties, is a mutual non-disclosure agreement A mutual non-disclosure agreement is usually signed when there is a necessity for confidentiality. It could be signed between two or more contracting parties: either companies, firms (including partnerships) or individuals. It is signed to protect any proprietary information or trade secrets they wish to share with one another.
Usage Contd… They may also be used in landlord/tenant matters, marital issues, custody disputes, and many different situations where neither party wishes the other(s) to discuss transactions which have occurred. The agreement offers a “two-way” protection for those signing it. In most circumstances, mutual non- disclosure agreements will be rendered void if the information they protect is required by a court of law in a related matter.
Salient Features The agreement, often called a confidentiality agreement, includes several types of closely held information: Information on the nature of and formulas for patents, copyrights, trademarks and service marks. Information on company processes ("the way we do things here"). Information on trade secrets- a formula, device, or mechanism, for example - that provides a competitive advantage to a company and which is severely compromised if disclosed.