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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties such as customers, suppliers, and businesses. NDAs are essential when entering consulting engagements, service agreements, or strategic alliances. They can be standalone documents or included as clauses within larger agreements. An NDA legally binds the recipient of confidential information from disclosing it to third parties or the public. Commonly protected information includes business and marketing plans, financial budgets, employee records, and technical research and development methods.