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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties, such as customers and suppliers, during various engagements like consulting or strategic alliances. NDAs can be standalone or incorporated as clauses within broader agreements. The recipient of confidential information is legally bound to refrain from disclosing it to third parties or the public. Confidential information typically includes business plans, financial data, employee lists, operational procedures, and technical research. Using an NDA ensures that sensitive information remains protected during collaborative efforts.