An NDA, or Non-Disclosure Agreement, is a legal contract that protects sensitive information shared between parties. It ensures that the receiving party does not disclose or misuse the information for their own benefit. NDAs are commonly used in business settings, such as when companies share trade secrets or proprietary information with potential partners or employees. When someone signs an NDA, they agree to keep the details confidential for a specified period. This helps maintain trust and encourages open communication, knowing that sensitive information will remain secure. Violating an NDA can lead to legal consequences, making it an important tool for protecting valuable information.