The acronym "NDA" stands for Non-Disclosure Agreement. It is a legally binding contract designed to protect sensitive information from being disclosed to unauthorized parties. In business agreements, NDAs are often used when two or more parties wish to share confidential information with each other for specific purposes, such as collaboration, partnerships, or during negotiations. By signing an NDA, the parties agree to maintain the confidentiality of shared data, trade secrets, or proprietary information, reducing the risk of intellectual property theft and fostering trust in business relationships.