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A non-disclosure agreement (NDA) is designed to protect confidential information shared with customers, suppliers, and other parties. It is applicable in situations such as consulting engagements, service agreements, and strategic alliances. An NDA can be a standalone document or included as a clause in a broader agreement. It legally binds the recipient of confidential information, preventing them from disclosing it to third parties or the public. Common types of confidential information covered by NDAs include business and marketing plans, financial data, employee records, business methods, and technical research and development.