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A non-disclosure agreement (NDA) serves to protect confidential information shared between parties, such as customers or suppliers. It is essential when engaging in consulting, service agreements, or strategic alliances. An NDA can be a standalone document or a clause within a broader agreement. It legally binds the recipient to refrain from disclosing confidential information to third parties or the public. Typically, confidential information includes business and marketing plans, financial projections, employee lists, operational procedures, and technical research.