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In the technology sector, nondisclosure agreements (NDAs) are common legal instruments used when organizations exchange sensitive information. For instance, a vendor may request a corporate customer to sign an NDA before revealing their technology, often in hopes of licensing it. Enterprises approached to sign NDAs should be cautious, as these agreements come with certain risks. By signing an NDA, the organization acknowledges it will receive confidential information that must be protected from unauthorized disclosure and will not be utilized without proper authority. It’s crucial for enterprises to thoroughly consider the implications before agreeing to such terms.
