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A non-disclosure agreement (NDA) is designed to protect confidential information shared between parties, such as customers and suppliers. NDAs should be utilized in contexts like consulting engagements or strategic alliances. They can be standalone documents or clauses within broader agreements. An NDA prevents the recipient of confidential information from disclosing it to third parties or the public. Commonly protected information includes business and marketing plans, financial data, employee lists, and technical research developments.