Unilateral vs. Mutual Nondisclosure Agreements

Learn about the difference between unilateral and mutual non-disclosure agreements. Rocket Lawyer has the legal information to help you make the right choice.

A Nondisclosure Agreement can be Unilateral or Mutual. In a Unilateral Nondisclosure Agreement, only one party is disclosing confidential information to another party. For example, one company might be requesting bids for work on a project. The company soliciting work would have confidential information shared in the specifications for the project, but the companies submitting bids might only be sharing information that is publicly available, such as their published rates and experience.

In a Mutual Nondisclosure Agreement, both parties are sharing confidential information they want to protect. For example, two companies might be considering a joint venture. Each company would have to disclose information about their organization and prior planning to assess whether or not they should work together.

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This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.

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