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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 essential when entering consulting engagements, service agreements, or strategic alliances. NDAs can be standalone or included as clauses in larger agreements. They legally bind the recipient of secret information, preventing unauthorized disclosure to third parties or the public. Commonly defined confidential information includes business and marketing plans, financial projections, employee lists, operational procedures, and technical research. NDAs ensure that sensitive information remains protected during and after business interactions.
