Different Types of a Mutual Agreement
Dealing with legal documents is never easy, especially if you’re not in the legal profession.
A mutual agreement can be difficult to understand since it encompasses a number of items. We’ll go over mutual agreements and assist you in drawing up numerous documents! With our help, writing a contract won’t require a lawyer or a contract template.
The Meaning of a Mutual Agreement Explained
A mutual agreement is a somewhat redundant phrase. Any agreement should be mutual in itself as it entails two or more parties who agree on something. Going by this definition, a mutual agreement can refer to all legally binding contracts where parties signed and mutually agreed to all the terms and clauses.
Mutual agreements can be used for any legal contingency—divorce, termination, child support, business partnerships, etc.
Another definition of a mutual agreement is more specific and portrays the difference between a mutual and a non-mutual agreement. A mutual agreement requires both parties to agree to the same condition. For example, a non-disclosure agreement can be:
- Mutual—Both parties agree not to disclose certain info about the other party
- Non-mutual—One party (e.g., an employee) signs the agreement
What Are the Elements of Mutual Agreements?
Every mutual agreement needs to consist of the following five elements:
- Consideration—There must be an exchange of value and benefits (for example, a service and payment)
- Capable parties—All signing parties must be of legal age (at least 18 years old) and of sound mind. The parties should also not be under the influence of drugs or alcohol
- Legal purpose—The contract obligations must abide by the U.S. laws to make them legal and enforceable
- Offer and acceptance—One party accepts what the other party is offering and vice versa
- Genuine and mutual assent—All parties truly and mutually agree to the terms of the contract
Different Mutual Agreement Types
Most mutual agreements also include different sub-agreements or clauses, such as the non-disclosure agreement or a confidentiality agreement, and a release or a hold harmless agreement, which can also be standalone mutual contracts.
Here’s what the most common types of mutual agreements should cover:
|Mutual Agreement Type||What It Usually Covers|
Mutual Business Agreement (Joint Venture Agreement)
Mutual Non-Disclosure Agreement
Mutual or Reciprocal Release (Hold Harmless) Agreement
What Happens if a Party Breaches a Mutual Agreement?
If one or more parties fail to follow the rules and obligations set forth in the mutual agreement, they have breached it. In case you are the injured party, you can sue the other party and take one of the following courses of action:
- Demand financial compensation
- Request the other party to perform their duties as per the agreement
Use DoNotPay To Draft Different Legal Documents
If you’re thinking of choosing between hiring a lawyer and downloading a contract template and taking matters into your own hands, know that there is a better way! You can use DoNotPay—the world’s first robot lawyer—to generate numerous legal documents in a few minutes. All it takes is several clicks once you open our app in any web browser:
- Enter the name of the legal document you wish to create
- Answer a few questions to tailor the document to your needs
That’s it on your end! Our AI-driven app can take it from here. Your agreement or contract will be ready for signing in no time. Feel free to generate the same type of document as many times as you want.
Check the table below for the types of legal documents we can currently make for you:
The Advantages of Creating Documents With the Help of DoNotPay
You can rely on DoNotPay to whip up various legal documents in a flash, which comes with additional perks, including:
- E-signing your contracts
- Faxing your documents to other parties with ease
- Not searching for or using contract samples or templates
- Not hiring lawyers
Learn About Numerous Agreements and Contracts With DoNotPay
Feel free to browse our learning center and get familiar with different legal documents that you may need to sign or create, such as:
- Settlement agreement
- Purchase agreement
- Loan agreement
- Subordination agreement
- Commercial lease agreement
- Postnuptial agreement
- Construction documents
- IRS installment agreement
- Partnership agreement
- Forbearance agreement
- Business requirements document
Fighting Administration Is Easier With DoNotPay
Bureaucracy is a disease of the modern world, and we finally have a cure. Thanks to artificial intelligence, DoNotPay knows how to handle numerous rules and regulations and make your life so much easier.
Our bots ask you a few questions, gather the necessary info, and off they go! Filing warranty and insurance claims, requesting property tax reductions, getting access to public records, or claiming unclaimed funds under your name—you can deal with these bothersome tasks from the comfort of your home and within minutes!
How Else Can We Help?
Not only does DoNotPay handle bureaucracy, but it also saves you money in the process. Whether you’re looking for the best learning materials for government tests or planning to comb through and cancel streaming subscriptions you don’t use, DoNotPay can give a helping hand.