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A non-disclosure agreement (NDA) is designed to protect confidential information that is shared among parties such as customers and suppliers. It is essential in consulting engagements, service agreements, and strategic alliances. An NDA can be a standalone document or a clause within a larger agreement. It binds the recipient of confidential information from disclosing it to third parties or the public. Commonly defined confidential information includes business and marketing plans, financial projections, employee lists, business methods, and technical research and development details. Proper use of NDAs helps safeguard sensitive information during business transactions.