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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 applicable in various scenarios, including consulting engagements and strategic alliances. NDAs can be standalone documents or included as clauses in larger agreements. They legally bind the recipient from disclosing confidential information to third parties or the public. Confidential information typically includes business and marketing strategies, financial data, employee records, and technical research and development methodologies. This legal protection ensures sensitive information remains secure during collaborations.