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In the technology sector, nondisclosure agreements (NDAs) are common legal tools for protecting sensitive information exchanged between organizations. For example, a vendor may request an NDA from a corporate customer to review their technology for potential licensing. Enterprises should approach NDAs cautiously, as signing them involves accepting responsibility for handling sensitive information. When an organization signs an NDA, it agrees to prevent unauthorized disclosure and refrain from using the information without permission. Careful consideration is essential before agreeing to such terms, as they carry potential risks and obligations.