The acronym "NDA" stands for "Non-Disclosure Agreement". An NDA is a legally binding contract that establishes a confidential relationship between parties, whereby sensitive information shared during business dealings must not be disclosed to unauthorized individuals or entities. NDAs are crucial in protecting intellectual property, trade secrets, and proprietary information. They ensure that both parties understand the importance of confidentiality and the legal implications of breaching the agreement. By signing an NDA, businesses can mitigate risks associated with sharing confidential information while fostering trust and collaboration in their partnerships.