A Non-Disclosure Agreement (NDA) is a legal contract designed to protect sensitive information. When two parties, such as a company and an employee, share confidential details, an NDA ensures that the recipient cannot disclose this information to others. This helps maintain privacy and security, especially in business settings where trade secrets or proprietary data are involved. NDAs are commonly used in various situations, including business partnerships, employment contracts, and collaborative projects. By signing an NDA, individuals agree to keep the shared information secret for a specified period, fostering trust and encouraging open communication without the fear of leaks.