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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties, such as customers and suppliers. NDAs should be utilized in various contexts, including consulting engagements and strategic alliances. They can be standalone or incorporated as clauses in larger agreements. An NDA legally binds the recipient from disclosing confidential information to third parties or the public. Commonly protected information includes business plans, financial projections, employee records, and technological research and development.