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In a legal context, the term "mutual" generally refers to an agreement or a condition that is reciprocal or agreed upon by allĀ parties. It implies that all parties involved have consented to the same terms, obligations, or conditions, and that the agreement is binding on all parties involved.

When a contract or a legal document contains mutual provisions, it means that both parties have agreed to undertake certain responsibilities, rights, or obligations. These provisions are typically reciprocal, meaning that they apply equally to all parties involved and are enforceable by each party against the other.

For example, a mutual confidentiality or nondisclosure agreement would require both parties to keep certain information confidential and would prevent either party from disclosing such information without the consent of the other. In this case, the obligation of confidentiality is shared equally by both parties, and both have the right to enforce it against each other in case of a breach.

[Last updated in July of 2023 by the Wex Definitions Team]