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A non-disclosure agreement (NDA) is designed to protect confidential information shared among parties such as customers and suppliers. NDAs should be utilized during consulting engagements, service agreements, and strategic alliances. They can take the form of independent confidentiality agreements or clauses within broader contracts. An NDA legally obligates the recipient of sensitive information to refrain from disclosing it to third parties or the public. Commonly protected information includes business strategies, financial budgets, employee records, and technical research. Overall, NDAs help safeguard critical business information from unauthorized dissemination.