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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties, such as customers and suppliers. NDAs are essential in contexts like consulting, service agreements, and strategic alliances. They can take the form of standalone confidentiality agreements or clauses within broader contracts. The NDA restricts the recipient from disclosing sensitive information to third parties or the public. Commonly protected confidential information includes business and marketing plans, financial data, employee lists, operating procedures, and research and development details.