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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 documents or included as clauses in larger agreements. The NDA binds the recipient from disclosing sensitive information to third parties or the public. Commonly protected information includes business and marketing plans, financial data, employee records, and technical research. NDAs ensure that confidential information remains secure during business interactions.