A Non-Disclosure Agreement (NDA) is a legal contract that protects sensitive information shared between parties. It ensures that the recipient of the information cannot disclose it to others without permission. NDAs are commonly used in business settings, such as when companies share trade secrets or proprietary information with employees or partners. By signing an NDA, individuals or organizations agree to keep the information confidential for a specified period. This helps maintain trust and encourages open communication, allowing for collaboration without the fear of sensitive information being leaked. NDAs are essential in protecting intellectual property and maintaining competitive advantages in the market.