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A non-disclosure agreement is created to protect confidential information shared between parties like customers, suppliers, and partners. It is essential during consulting engagements, service agreements, or strategic alliances. The agreement prevents the recipient of secret information from disclosing it to third parties or the public. Common examples of confidential information include business plans, financial data, employee records, and research and development methods. Creating a stand-alone confidentiality agreement or including NDAs in a larger transaction are ways to enforce confidentiality.
