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A non-disclosure agreement (NDA) is a contract between parties to keep shared information confidential. Also known as a confidentiality agreement, it ensures that any exchanged information, particularly valuable data like intellectual property, remains secret. NDAs are crucial when companies seek external input while protecting sensitive information. Before discussing ideas that require external advice, one can ask the other party to sign an NDA. This practice is common among various professionals, including business coaches, accountants, marketing consultants, financial advisors, insurance brokers, scientists, and politicians, with thousands of NDAs signed daily worldwide.
