A non-disclosure agreement (NDA) is a legal contract that prevents one party from sharing confidential information with others. It is commonly used in business settings to protect sensitive data, such as trade secrets, client lists, or proprietary technology. By signing an NDA, the parties involved agree to keep the information private and not disclose it to unauthorized individuals. NDAs can be mutual, where both parties share confidential information, or unilateral, where only one party discloses sensitive data. Violating an NDA can lead to legal consequences, including financial penalties or lawsuits. These agreements are essential for maintaining trust and protecting intellectual property in various industries.