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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 during consulting engagements, service agreements, and strategic alliances. They can be standalone agreements or part of a larger transaction. An NDA restricts the recipient of secret information from disclosing it to unauthorized individuals or the public. Commonly classified confidential information includes business and marketing strategies, financial projections, employee records, and technical research. By defining and protecting this information, NDAs help maintain a competitive advantage and safeguard sensitive data.