Mutual NDA template — when both sides share
In a mutual NDA, both sides share confidential information and both promise to keep the other's information private. FD AI drafts one from Founders Doc's own wording, under the law you choose.
In FD AI: Choose "Mutual: both sides disclose information" in the Direction question. The same duties then apply to both parties.
What this NDA covers
- Mutual or one-way
- Choose whether both sides share information, or only one. It changes who owes the duty to keep things private.
- What is confidential
- Described from your own words — customer lists, pricing, code, plans — so there is no argument later about what was covered.
- What the information may be used for
- Limited to the purpose you describe, such as exploring a partnership or an investment.
- How long it lasts
- Two years unless you choose otherwise, or no time limit at all.
- Personal data
- If personal data will be shared, a data protection clause is added.
- Law and disputes
- The law of the place you choose, with disputes going to the courts or to arbitration.
- No hidden extras
- FD AI does not slip in a non-compete or other aggressive terms you did not ask for.
When a mutual NDA is the right choice
- Both sides share
- Use it when information will flow both ways, such as two companies exploring a partnership or a joint project.
- Balanced terms
- The same definition of confidential information, the same purpose limit and the same time period apply to both parties.
- Easier to agree
- Because neither side is favoured, the other party is often quicker to sign it.
- Not always needed
- If only you will share information, a one-way NDA is simpler and puts no duties on you.
How it works
- Answer a few questionsPlain English, one at a time. Skip anything you are unsure of.
- FD AI drafts your NDAFrom Founders Doc's own lawyer-written wording, shaped around your answers.
- Check, edit and downloadChange any wording, ask FD AI to explain a clause, then download it as Word.
Common questions
What is the difference between a mutual and a one-way NDA?
In a one-way NDA only one party shares information and only the other promises to keep it private. In a mutual NDA both share and both promise.
Is a mutual NDA weaker than a one-way NDA?
No. The protection for your information is the same; the difference is that you also take on the duty to protect the other side's information.
Can I use a mutual NDA with a supplier or investor?
Yes, if both sides will share confidential information. If only you will share, a one-way NDA usually fits better.
Mutual or one-way: which do I need?
If only you will share confidential information, a one-way NDA is enough. If both sides will share, choose mutual so the same duties apply to both.
Do investors sign NDAs?
Many professional investors decline to sign NDAs at the first meeting, because they see many similar ideas. An NDA is more usual later, for due diligence, or with partners and suppliers.
How long should an NDA last?
Two to five years is common for business information. Some information, such as trade secrets, may need protection for longer — FD AI lets you choose a period or no time limit.
Can I edit the NDA after FD AI drafts it?
Yes. You can change any wording in the draft before you download it as a Word document, and ask FD AI to explain any clause.
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This page is general information, not legal advice. Every deal is different — for advice on your situation, talk to a Founders Doc lawyer.