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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties such as customers and suppliers. It is typically utilized in consulting engagements, service agreements, and strategic alliances. NDAs can be standalone documents or included as clauses in larger agreements. They legally bind the recipient of confidential information from revealing it to third parties or the public. Commonly protected information includes business plans, marketing strategies, financial data, employee records, and various operational procedures. NDAs ensure that sensitive information remains secure and private.