A Non-Disclosure Agreement (NDA) is a legally binding contract that establishes a confidential relationship between parties, prohibiting the disclosure of certain information. NDAs are commonly used in business to protect sensitive information, trade secrets, and proprietary data shared between companies or individuals. By signing an NDA, parties agree not to reveal or use the information for any purpose outside the terms specified in the agreement. NDAs are essential for maintaining confidentiality during negotiations, partnerships, and collaborations.